Philippine Sovereign Debt Faces Prolonged Pressure Amid Sticky Inflation and Hawkish Central Bank

Analysts predict continued pressure on Philippine sovereign debt due to persistent inflation, which is expected to keep the central bank hawkish. This extends a recent slump that saw Philippine bonds perform as Southeast Asia's worst last month. Union Bank of the Philippines anticipates 10-year bond yields to rise to 7.60%-7.80% in the near term, while Aberdeen Investments expects them to remain elevated between 7.20%-7.60%.