Global credits saw spreads move wider on risk-off headlines. Credit spreads gapped wider by 5-8 basis points (bps) at the start of the week following headlines of renewed trade tensions between the US and China. The widening move progressed, as further news of the US imposing port fees on Chinese vessels came out. Finally, at the end of the week, risk sentiment soured once again, as credit quality concerns hit a pair of regional US banks which revealed potential bad loans problems in the opaque private credit market. For Philippine corporates, the space continues to be retail driven as usual with most of the demand being concentrated in 4–5-year bank and corporate papers. With this, US Treasuries ended little changed to 3 bps lower. Sovereign spreads ended 6-12 bps wider while investment grade corporate spreads 8-10bps wider. Credit default swap spreads on the other hand are little changed to 2 bps wider.

• The US NFIB Small Business Optimism for September came in lower than expected at 98.8 vs 100.6 in a Bloomberg Survey
• The Empire State Manufacturing Index for October came in higher than expected at 10.7 vs –1.8 in a Bloomberg Survey. A positive index means growth, while a value below zero means a decline.