How does faster inflation in November impact assets? 

Headline inflation quickened in November following a string of typhoons.

The acceleration was primarily fueled by higher food and transport costs. Key drivers to the significant rise in the food and non-alcoholic beverages category included vegetables, tubers, plantains, cooking bananas, and pulses.

Related article: Inflation Update: Benign prices cast a rate cut in stone 

Asset impact

Bonds

• Market interest was piqued following the inflation data release, leading to buying activity primarily on the long end of the government securities (GS) curve. This pushed bids lower by 5 basis points (bps), while the shorter end of the curve remained mostly unchanged, resulting in a somewhat flatter yield curve.
• The inflation figures met expectations and supported the possibility of a rate cut by the