HALISTER1: Philippine Long-Term USD Bonds Pressured by Supply Issues: BPI

Philippine Long-Term USD Bonds Pressured by Supply Issues: BPI

(Bloomberg) -- Yields on Philippines USD-denominated bonds due March 2041 and January 2040 are rising on supply concerns after the govt announced a new 25-year global bond offering, according to Bong Cabral, trader at Bank of the Philippine Islands in Manila.
  • Long-end yields have been rising but even more so for the 2041 bond, Cabral says
  • Upward pressure on yields may stall as players trade on speculation of “good demand” for new bond offer
  • Yield on 3.95% bond due 2040 rises to 3.717% vs 3.68% Tuesday
    • Yield on 3.7% bond due 2041 is at 3.667% vs 3.632%
  • NOTE: Philippines announced offer to sell 2042 bond and switch tender for 14 existing bonds due 2019-2037; initial price talk is ~3.95%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Voltaire Cabral (Bank of the Philippine Islands)

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