Philippines 10-Year Bond Yield Retreats

2026-08-05 02:47 By Kyrie Dichosa 1 min. read

The Philippine’s 10-year government bond yield fell to around 7.36% in early August, further retreating from a two-month high of 7.58% touched in late July, as easing inflation strengthened expectations that the central bank could maintain a more cautious approach to monetary policy.

Headline inflation slowed for a third consecutive month in July to 6.2%, below expectations of 6.4%, while core inflation eased to 4.2% after six months of gains.

The softer price growth gave the Bangko Sentral ng Pilipinas more room to assess incoming data and the impact of its recent 50 bps in rate increases this year.

However, inflation remained elevated at around twice the pace of other major Southeast Asian economies, driven by higher energy costs linked to the Iran conflict and peso weakness that raised import costs.

Meanwhile, markets have turned their attention to Q2 GDP data due later this week, after the economy expanded just 2.8% in Q1, marking one of the weakest performances in the region.



News Stream
Philippines 10-Year Bond Yield Retreats
The Philippine’s 10-year government bond yield fell to around 7.36% in early August, further retreating from a two-month high of 7.58% touched in late July, as easing inflation strengthened expectations that the central bank could maintain a more cautious approach to monetary policy. Headline inflation slowed for a third consecutive month in July to 6.2%, below expectations of 6.4%, while core inflation eased to 4.2% after six months of gains. The softer price growth gave the Bangko Sentral ng Pilipinas more room to assess incoming data and the impact of its recent 50 bps in rate increases this year. However, inflation remained elevated at around twice the pace of other major Southeast Asian economies, driven by higher energy costs linked to the Iran conflict and peso weakness that raised import costs. Meanwhile, markets have turned their attention to Q2 GDP data due later this week, after the economy expanded just 2.8% in Q1, marking one of the weakest performances in the region.
2026-08-05
Philippines 10Y Bond Yield Hits 7-1/2-year High
Philippines 10 Year Government Bond Yield increased to 7.87%, the highest since November 2018. Over the past 4 weeks, Philippines 10Y Bond Yield gained 86.40 basis points, and in the last 12 months, it increased 132.10 basis points.
2026-05-19
Philippines 10-Year Bond Yield Rises
The Philippines’s 10-year government bond yield rose to around 7.2% in mid-May, moving back toward an over three-and-a-half-year high, as peso bonds continued to weaken on large rate hike expectations. This followed headline inflation surging to a three-year high of 7.2% in April, well above the central bank’s 5.6%–6.4% forecast range, reflecting rapidly intensifying price pressures driven by higher energy costs and the country’s heavy reliance on Middle Eastern oil imports. As a result, markets have strengthened bets on a 50 bps rate hike at the June 18 policy meeting, driving a broader selloff in sovereign bonds. Philippine debt has since posted losses exceeding 10% for dollar-based investors since the start of the Iran war, making it the worst performer in emerging Asia, according to a Bloomberg index. Weak demand at recent government bond auctions further reinforces the softening investor appetite for sovereign debt.
2026-05-13