Last week, global credits saw muted trading activity, as heightened volatility in benchmark US Treasury yields kept investors on the sidelines and discouraged any meaningful bias toward either buying or selling.
Still, general risk sentiment remained satisfactory. Investors continued to seek yield pickup through select Indonesian quasi-sovereign issuers and Asia investment grade (IG) corporate credits.
In the sovereign space, trading flows were mixed across the region, resulting in credit spread movements that were largely rangebound. Credit spreads ultimately ended the week mixed, within a narrow band of around 2 basis points (bps) tighter to 2 bps wider week-on-week (WoW).
In contrast, Asia IG corporate credits outperformed, supported by steady demand and healthy risk appetite, allowing corporate spreads to grind tighter by approximately 2-5 bps WoW.
For Philippine corporate issuers, activity remained relatively light and retail-driven, with most of the demand on belly paper, particularly Development Bank of the Philippines (DEVPHI) 2.375 31 and SM Prime Holdings (SMPH) 4.75 30—the latter yielding just under 6% last Friday. Cash prices tracked benchmark yields and ended the week 0.375 to 1.375 points lower WoW.
Looking ahead, market participants may focus on US economic data, inflation and employment figures.
Given the current backdrop, cautious trading may be considered, as valuations continue to appear tight and may not fully reflect prevailing macroeconomic and market risks.
Note: Rates are indicative (as of September 29, 2026) and subject to refresh.
Note: Rates are indicative (as of September 29, 2026) and subject to refresh.
For more information on foreign currency denominated bonds, you may reach out to your Wealth Specialist or log in to Metrobank Wealth Manager.
DANA LOUISE GERONIMO is an Investment Counselor at Metrobank under the Markets Advisory Division. She built her expertise through her previous roles as an Investment Specialist and as a Financial Markets Sector Management Trainee within the bank. Dana holds a Master’s degree in Industrial Economics from the University of Asia and the Pacific. Outside of work, she enjoys exploring different fitness centers and reading.
