Credits traded 2–3 basis points (bps) wider at the start of the week, as market participants remained on the sidelines ahead of the US consumer price index (CPI) release on Wednesday. By mid-week, credit spreads tightened following a sell-off in US Treasury yields, as CPI reports showed price pressure building in tariff-related items. Despite the sell-off in USTs, market participants were seen picking up credit due to attractive outright yields. In the sovereign space, spreads of Philippine bonds (ROP) traded rangebound, while Indonesia bond (INDON) spreads widened by 5 bps. In the Asia investment grade space, spreads for Hyundai Capital America (HYMTR) continued to tighten by 4–6 bps. Other bonds in space generally traded 1–2 bps tighter. In the Philippine corporate space, JG Summit Holdings (JGS 4.125 30) takes the spotlight of the trading session. Cash prices for the bond rose by more than 0.375 point, as the market absorbed heavy demand from retail investors

•  The US Consumer Price Index Year-on-Year came in higher than expected at 2.7% versus 2.6% in a Bloomberg Survey. This is a 0.3% increase month-on-month.
• The US Retail Sales month-on-month came in higher than expected at 0.6% versus 0.1% in a Bloomberg Survey.
• The US Consumer Sentiment/Expectation came in slightly higher than expected at 61.8 versus 61.5 in a Bloomberg Survey.