Philippines Sovereign Debt Yields 2-5bps Lower Ahead of CPI on Tuesday

Philippines USD sovereign debt yields followed US yields lower on Monday, out-performing US Treasuries as curves bull flatten with curves 2-5bps tighter. Markets are awaiting CPI data due out on Tuesday with expectations that food prices will push inflation higher.

• The 2Y yield is 2bps lower at 4.78%, 10Y yield is 3bps lower at 4.97%, while 5yr CDS is unchanged at 60.85bps
• The spread differences between US and PHILIP has remained relatively stable over the past month with the 10y spread difference at 77bps, while the 2Y spread difference has narrow from 36bps to 24bps
• Cross-asset moves, the USD/PHP is 003% lower, PSEi Index is 0.60% higher, Corporate Credit curve is 1-2bps wider, whilst US Tsys are 1-2bps higher.
• Philippines signed a business pact with Australia worth $1.53b spanning diverse sectors such as renewable energy, waste-to-energy technology, organic recycling technology, countryside housing initiatives, establishment of data centers, manufacturing of health technology solutions, and digital health services.
• Coming up Philippines to Sell PHP15b in 91-364day Bills at 1.15pm local, 4:15 aest.
• Looking ahead CPI data is due on Tuesday forecast is for 3%, from 2.8% prior.