June 9, 2023

The Gist

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Your Morning Fix

  • US equities inched higher, led by tech stocks, while 10-year US treasury yields dropped as optimism on a softening labor market indicated by the higher-than-expected jobless claims data made a strong case for the Fed to hold off from raising rates next week.
  • US weekly jobless claims as of June 3 surged to their highest level of 261,000 since October 2021, exceeding economists’ forecast of 235,000.
  • The Bangko Sentral ng Pilipinas (BSP) announced the cutting of the banks’ reserve requirement ratio by 250 basis points (bps) from 12% to 9.5% for universal and commercial banks and nonbank financial institutions, effective June 30, alongside the introduction of 56-day bills to manage the impact on liquidity.
  • The Philippines’ manufacturing output measured by the volume of production index (VoPi) rose to a three-month high of 8.2% in April (vs 3.4% in March), indicating strong domestic demand, especially for food products, transport equipment, and other nonmetallic mineral products.
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Portfolio Picks

Rates & Bonds 2 MIN READ

Peso GS Weekly: Buy bonds at current levels

It’s wise to pick up peso government securities on any reversals higher in yields as local inflation continues to decelerate for the fourth consecutive month in May to 6.1%.

By Geraldine Wambangco June 7, 2023
Investment Tips 3 MIN READ

Two investment strategies amid uncertain markets

Some investors may still feel apprehensive even after the US averted a debt ceiling disaster. Still, our chief markets strategist suggests to remain opportunistic, to think long term, and to consider these two ways to make money.

By Anthony O. Alcantara June 7, 2023
Investment Tips 3 MIN READ

US dodges default. What’s next?

Now that a default crisis in the US has been averted, we look at how this resolution could move short-term US yields in the near term, and the opportunities that await investors.

By Patty Membrebe and Geraldine Wambangco June 6, 2023
Economy 0 MIN READ

Inflation Update: Inflation to go down further in 2024

May 2023 saw a drop in both headline and core inflation, confirming a downward trajectory for inflation moving forward. As a result, Metrobank adjusted its 2024 inflation forecast to reflect this encouraging trend.

By Metrobank June 6, 2023
Economy 2 MIN READ

Our call: 6.1% inflation print for May 2023 

The country’s Inflation continues to cool down. We may see the benchmark interest rate kept stable in the BSP’s next monetary board meeting.

By Metrobank June 5, 2023
Rates & Bonds 7 MIN READ

Radar Report: Continue investing tactically

The central bank’s “prudent pause” in rate hikes has given investors the opportunity to recalibrate their bond portfolio strategy.

By EA Aguirre May 30, 2023

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Explainer Articles
Explainer 4 MIN READ

What is the Reserve Requirement Ratio?

To ensure that there is available cash ready to be distributed to customers, central banks, like the BSP require all banks to set aside a specific amount in their cash reserves. This is a solution against panic.

Key Points
  • What are Reserve Requirements?
  • What is the purpose of the RRR?
  • What is the effect of an RRR cut/hike?
Strategy Updates

Strategy Update October 2022

This contains the strategy update of Metrobank as of October 6, 2022.

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