Philippines Sov Debt Curves Steepens, Outperforms US Yields

The Philippines USD sovereign debt curve bear steepened last week with yields 7-15bps higher, significantly out-performing the moves in US treasury which finished the week 20-30bps wider. Overseas cash remittances were slightly below expectation coming in at 2.7% vs 2.8%.

• To start the week off yields are continuing their trend from last week with yields 1-3bps higher. The 2Y yield is 1bp higher at 4.85%, 5Y yield is 2bp higher at 5.01% the 10Y yield is 2bp higher at 5.10%, while 5yr CDS is up 1bp to 60bps
• The PHILIP to UST spread difference has significantly tightened over the past week the 2y is 12bps now tightest levels since July 2023, the 5yr is 68bps from 88bps and YTD wide on from March 6th, while the 10yr is 80bps from 93.5bps on march 6th.
• Cross-asset moves: the USD/PHP is 0.21% higher, PSEi Index is up 1.13%, Corporate Credit curve is 5-9bps higher over the past week with better selling in the long-end, while US Tsys yields are mostly unchanged.
• Looking Ahead: Philippines to sell PHP15b total of 91, 182 & 364 day Bills at 4.15 AEST, while Balance of Payment data due on Tuesday