Long Philippine bonds seem out of favour

Price pressures: A bag vendor browses her mobile phone as she waits for customers in Manila. BSP has raised its 2021 average inflation target to 4.5% from 4.4%, above its target range of 2% to 4%, citing supply-side pressures. — AFP

MANILA: Most South-East Asian yield curves have flattened in recent months in tandem with a similar move in US Treasuries. The Philippines is an outlier.

The spread between five-year and 10-year peso bond yields is near the widest in over a year, with long-dated securities hit by fears about rising supply as the Philippines’ fiscal deficit widens.