Bright Morning - 12 August 2026

Bringing the latest market news closer to you.

Macroeconomy

• President Donald Trump has demanded reparations from Iran "for the damage they've done over a 50-year period." He also said the U.S. has control of the Strait of Hormuz. The impasse leaves Washington treating its naval presence as a permanent fixture guaranteeing access.
• The government expects a higher unemployment rate this year at levels unseen since the Covid-19 pandemic, as the country's chief economist said challenges could weigh on the economy and employment. The proposed P7.2-trillion 2027 national budget submitted to Congress showed an adjusted unemployment rate at 5.3 to 5.8% for 2026.

Fixed Income

• Peso government bond yields were 3-12 bps higher. Rising US yields and oil prices drove sentiment in the local market. On the supply front, BTr issued PHP 30bn of 7Y bonds, which was well absorbed by the market at a bid-to-cover ratio of 1.7.
• USD yields fell by 1-2 bps, retracing the selloff from the previous session, as markets trade in a holding pattern ahead of US CPI.

Equities

• Global equities retreated 0.23% pressured by a technology sector sell-off, ongoing geopolitical uncertainty regarding the U.S.-Iran conflict and the Strait of Hormuz, and caution ahead of key U.S. inflation data.
• The PSEi was up 0.60% to close at 6,326, as the market reacted positively to the ongoing second quarter earnings season.

Daily Market Movements