Philippines Sovereign Debt Yields Edge Higher

The Philippines USD sovereign debt curve are flatter today, with yields 1-3bps higher outperforming the moves in US Treasury on Thursday after CPI beat expectations coming in at 3.2% vs 3.1% expected.

• The 2Y yield is 1bps higher at 4.775%, 5Y yield is 2.5bps higher at 4.90% the 10Y yield is 2bp higher at 4.985%, while 5yr CDS is down 1bp to 65.50bps
• The Philip to US Treasury spread difference widen late last week, but have been able to close the gap slightly to start this week with he spread difference for the 2y is 19bps, the 5yr is 31.5bps, while the 10yr is 84bps.
• Cross-asset moves: the USD/PHP is up 0.16%, PSEi Index is 1.41% higher, Corporate Credit curve is 2-6bps tighter over the week with better buying at the 4-5yr maturity, while US Tsys yields are unchanged.
• During his three-day visit to Germany, Philippines' Marcos secured investment agreements exceeding $4 billion, covering projects like a partner hospital, an innovation think-tank hub, a digital healthcare partnership, collaborations in various sectors, and a memorandum of agreement for rehabilitating degraded farmlands. Additionally, investments were pledged for a vehicle manufacturing facility, including military-grade armored personnel carriers, and the establishment of data centers for a digital insurance platform serving the Philippines and the ASEAN region.
• Looking Ahead: Nothing on the Calendar Today or Thursday. On Friday Overseas cash remittances and Budget Balance are due out.