During the previous week, investment-grade (IG) spreads generally widened by 1-5 basis points (bps), following a decline in equities amid concerns over a potential AI driven market bubble. Trading activity remained subdued, influenced by a US holiday and a weaker macroeconomic backdrop. In the sovereign space, spreads were largely unchanged, with most trading activity seen in the 10-Year tenor, as market players covered their positions amid a rise in yields. Meanwhile, in the Philippine market, bond prices stayed flat to slightly lower (by up to 0.25 points), despite a sharp rise in US Treasury yields. This resilience is mainly due to tight supply conditions.

• US Construction Spending grew 0.2% in August versus a –0.1% estimate in a Bloomberg Survey.
• The US NFIB Small Business Optimism came in slightly lower than expected at 98.2 in October versus 98.3 in a Bloomberg Survey.
• The New York Empire State Manufacturing Index in the US came in higher than expected at 18.7 in November versus 5.8 in a Bloomberg Survey.