Philippines 10Y Bond Yield Hits 12-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 assessed the central bank’s policy decision. The government raised 235 billion pesos ($4.1 billion) in the sale, 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, supported bond prices and put downward pressure on yields, which are already about 50 basis points below their June peak. Meanwhile, the Bangko Sentral ng Pilipinas reduced its benchmark interest rate by 25 bps to 4.25%, as expected, to support an economy weakened by softer domestic demand and fallout from a major corruption scandal. The central bank also removed its reference to the monetary policy easing cycle nearing its end, language it had used in its December meeting.

Philippines 10 Year Government Bond Yield decreased to 5.86%, the lowest since November 2024. Over the past 4 weeks, Philippines 10Y Bond Yield lost 1.10 basis points, and in the last 12 months, it decreased 5.20 basis points.