<p><strong>GLOBAL: The US Federal Reserve (Fed) raised its policy rate by 25 basis points (bps) to 3.75-4.00% in its September meeting, </strong>in line with expectations. The decision came as the Middle East conflict keeps inflation above the 2% target&nbsp;</p>

<p><strong>Market impact: US stocks fell, while Treasury yields and the dollar </strong>rose after the Fed's rate hike.&nbsp;</p>

<p><strong>Metrobank revises its call on the Fed policy rate, projecting another 25-bp rate hike before the end of the year</strong> amid sticky inflation and a stable economy.&nbsp;</p>

<p><strong>LOCAL: The Bureau of the Treasury canceled the planned auction and issuance of a new five-year fixed-rate Treasury note set for September 22.</strong> The cancellation is due to rising borrowing costs and a weakening peso.&nbsp;</p>

<p><strong>Market impact: The PSEi slid to the 5,900 level on growth concerns, </strong>while the peso gained on profit-taking.&nbsp;</p>

<p><strong>A complete cancellation of the auction for the year is unlikely, </strong>since the government still has real funding needs and treats jumbo FXTN issuances as an important financing tool.&nbsp;</p>