Philippine 10Y Yield Eases From 2-Year High
2026-03-27 04:29
By
Joshua Ferrer
1 min. read
The Philippines’ 10-year government bond yield fell to below 6.9%, easing from a nearly two-year high after the central bank’s move to hold rates at its off-cycle meeting signaled a more cautious stance toward further tightening.
National Treasurer Sharon Almanza said the move could help stabilize the bond market following recent weak auctions amid sharply higher yields.
The pressure stemmed from rising inflation, fueled by a spike in oil prices from the Iran war, prompting the central bank to lift its 2026 inflation forecast to around 5.1%.
Despite inflation risks breaching the 4% ceiling in the near-term, the BSP kept its policy rate steady at 4.25%, opting to assess the lagged impact of previous 225 bps of easing.
Governor Eli Remolona noted growth is expected to remain weak, warning that further tightening could delay recovery.
Still, policymakers signaled that upcoming March CPI data will be key to determining whether rate hikes could resume as early as April.