Bright Morning - 26 June 2026

Bringing the latest market news closer to you.

Macroeconomy

• Iraq is demanding a higher OPEC output quota and threatening to exit the group, a move that would significantly impact the organization. As the second-largest exporter, Iraq's potential departure highlights its economic reliance on oil, particularly with exports traversing the Persian Gulf.
• Fitch Ratings has revised its outlook for the Philippine banking sector from 'neutral' to 'deteriorating.' The agency warned that macroeconomic pressures will likely weaken borrowers' repayment capacity and compress earnings. Fitch noted that risks to domestic lenders' asset quality are mounting due to persistent headwinds buffeting the Philippine economy.

Fixed Income

• Philippine government bond yields dropped 2-10 basis points following a rally in US Treasury rates and declining oil prices. Trading activity concentrated heavily on maturities between 3 and 10 years.
• US Treasury yields diverged as the 2-year yield fell 2.5 basis points, while the 30-year yield rose 2 basis points. Softer-than-expected inflation data dragged front-end yields lower. Conversely, rebounding overnight oil prices triggered underperformance in long-duration bonds.

Equities

• Global equities gained 0.37% as robust semiconductor earnings lifted investor sentiment, while inflation data matching expectations stabilized interest rate outlooks.
• The PSEi rebounded 1.33% (+79.69 points) to close at 6,071.06, propelled by oil prices hitting a four-month low. However, financials ended in the red following Fitch Ratings' outlook downgrade of Philippine banks to "deteriorating" due to asset quality concerns.

Bright Idea

• PHP bond yields climbed 3-9 bps after the BTr awarded 4Y and 10Y bonds at the high end of guidance. Secondary market activity was muted on a lack of local catalysts.
• US Treasury yields slipped 1-3 bps on lower oil prices and soft macro sentiment amid a global chipmaker selloff.

Daily Market Movements