Philippine Bonds Post Asia’s Biggest Rebound as Inflation Risks Threaten Rally

1 articles · Updated · Bloomberg · Jun 25

Philippine bonds have led emerging Asia’s rebound after an interim US-Iran deal, but analysts say the price surge is unlikely to last.
Western Asset Management and William Blair expect oil prices to stay elevated, keeping inflation pressure alive even after the geopolitical relief rally.
El Niño-driven supply shocks could add to price pressures, reinforcing expectations that the Bangko Sentral ng Pilipinas will keep a hawkish stance.
That combination leaves the peso fixed-income market on a fundamentally bearish footing, suggesting the recent outperformance may fade despite its regional lead.