• Emerging Asia’s worst-performing sovereign bonds are at risk of further declines as the Philippine central bank looks to delay monetary easing due to inflation fears and a weak peso.
  • The Bangko Sentral ng Pilipinas has interest-rate cuts may be pushed back, given higher consumer prices and the Federal Reserve’s less-dovish pivot. The BSP has had to contend with the country’s history of intense price pressures, and Barclays Bank Plc calls it the region’s most “inflation-sensitive” central bank.
  • With investors pricing in hawkish expectations, the country’s 10-year bond yields jumped by 73 basis points so far in April, the most in emerging Asia. That’s also close to double the 37 basis-point jump in similar-dated Indonesia yields.
  • The BSP raised its inflation forecast earlier this month, saying price growth will likely remain above the 2%-4% target through the third quarter. This indicates that the rise in yields may not let up.