Philippine Yields End Mixed Ahead of BSP Meeting
Yields on government debt in the Philippines ended mixed last week as concerns over elevated inflation at home and in the United States kept rate hike bets alive. Traders were positioning before the Bangko Sentral ng Pilipinas' (BSP) policy meeting on Thursday.
The 91-day Treasury bill yield rose to 5.0025%, while rates of the 182- and 364-day T-bills decreased by 1.73 bps and 5.78 bps, respectively. At the belly, yields ended mostly higher for the three-, four-, five-, and seven-year Treasury bonds.
The release of minutes from the US Federal Reserve's July policy meeting revived rate-hike expectations in the world's largest economy, following softer-than-expected data. The Fed maintained a hawkish stance, citing elevated inflation and high uncertainty due to the Middle East conflict.
Local bond yields also reacted to the expiration of the 60-day memorandum of understanding between US and Iran without a definitive deal to end the conflict in the Middle East.