FX.co ★ Philippines 10-Year Yield Hovers Near 2-Month Low

The yield on the Philippines’ 10-year government bond traded around 5.88%, hovering near its lowest level since late December, after a jumbo peso bond sale and ahead of the central bank’s policy decision. The government raised 235 billion pesos ($4.1 billion) in the offering—below the 300 billion pesos issued in late April—but the sale period was cut short due to strong demand. The smaller supply, combined with solid investor appetite, has supported bond prices and pushed yields lower, leaving them already about 50 basis points below their June peak. Markets are now awaiting an expected rate cut from the Bangko Sentral ng Pilipinas later today, with attention focused on the bank’s forward guidance. The BSP has recently signaled that its easing cycle is close to concluding, suggesting today’s move may be the final cut, with any further reductions likely to be limited and contingent on incoming data.