RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
The Philippines peso has underperformed in comparison to its peers in the recent months. Part of this reflects increasing political concerns among foreign investors. There was also a spike in the 5Y credit default swap (CDS) spread to 117 basis points, from 84 bps in early September.
As the distortion from low oil prices dissipates going into 2017, CPI inflation should average 2.6 percent next year, up from a projected 1.6 percent this year. Coupled with the anticipated upward pressure from global rates, the higher inflation trajectory is likely to prompt the BSP to tighten its policy stance.
Meanwhile, major central banks around the world are recognizing the limits of monetary policy. With taper a consideration for the European Central Bank (ECB) and the Bank of Japan (BOJ) over the coming quarters, longer-term developed market yields are already heading higher.
Against this backdrop, the market is likely to be more discerning on fundamentals. Inflation and rate hike risks are not adequately priced into the market. Couched in an environment of rising developed market interest rates, there is considerable room for higher PHgov yields.
