Philippines 10-Year Yield Hovers Near 2-Month Low

The Philippines’ 10-year government bond yield traded around 5.88%, hovering near its lowest level since late December, following a jumbo peso bond offering, while investors awaited the central bank’s policy decision. The government raised 235?billion pesos ($4.1?billion) in the sale, but still lower than the 300?billion pesos issued in late April, with the offer period cut short due to strong demand. The smaller issuance, combined with robust demand, supports bond prices and puts downward pressure on yields, which are already about 50 basis points below their June peak. Meanwhile, markets are bracing for an expected rate cut by the Bangko Sentral ng Pilipinas later today. However, market focus will be on forward guidance, as the BSP has recently indicated the easing cycle is nearing its end, with the upcoming decision likely to be the last cut and any future reductions limited and data-dependent.