Credit spreads generally widened by 1-12 basis points (bps) week-on-week, driven by a cautious market following US President Donald Trump’s announcement of a 25% tariff on automobiles. This selloff was further supported by weak consumer sentiment and significant new issuances. For government bonds, Indonesian spreads expanded by approximately 9-12 bps week-on-week, as the rupiah weakened to levels not seen since the Asian Financial Crisis. Republic of the Philippines bonds also widened by 7-10 bps, following the widening spread in Indonesia. In the corporate bond market, Asian investment-grade bonds continued to decline due to increased new supply and heightened US tariff risks. In the Philippine corporate bonds market, retail activity was particularly active with two new issuances from Jollibee Foods Corp. (JFC) and Bank of the Philippine Islands (BPI). JFC priced its 5-year bonds at +125 basis points, with order books reaching 7 times oversubscribed. In contrast, BPI saw weaker demand, with order books reaching only 2 times oversubscribed due to its larger issuance size. Following issuance, BPI30 and JFC30 bonds saw retail buying activity at levels of 5.05 and 5.20, respectively.

• The US Personal Consumption Expenditures Index printed higher than expected at 2.8% versus 2.7% year-on-year estimate in a Bloomberg survey.
• The US Unemployment Claims printed softer than expected at 224,000 versus a 225,000 estimate in a Bloomberg survey.
• The US Purchasing Managers’ Index printed lower than expected at 49.0 versus a 49.50 estimate in a Bloomberg survey.