Bright Morning - 27 July 2026

Bringing the latest market news closer to you.

Macroeconomy

• Infrastructure spending plunged by an annual 35% in May amid strengthened review and validation processes, by the Department of Budget and Management (DBM). At the same time, experts warned that prolonged government underspending could further weaken economic growth and urged the Marcos administration to overhaul infrastructure project implementation.
• Oil prices fell after Iran said it would suspend attacks as long as a US pause in hostilities remains in place. Iran has indicated it will stop carrying out attacks as long as the US also refrains from striking. Brent crude fell to around $92 a barrel.

Fixed Income

• Peso government bond yields rose another 3-15 bps with better selling seen for 3-5Y tenors. Sentiment remains poor as the rise in oil prices and weaker Peso further add to inflation concerns.
• US treasury yields fell by 2-3 bps as the rise in oil prices eased. With the renewed inflationary risk from middle east tensions, markets are now pricing in a 34% chance of a rate hike in the FOMC meeting this week.

Equities

• Global equities fell 0.20% as rising oil-driven inflation concerns heightened fears of tighter monetary policy, while renewed scrutiny of elevated Al spending weighed on investor sentiment despite solid corporate earnings.
• The PSEi stayed flat at 6,281 pts on Friday as the peso hit record lows. Friday's action extended the week's decline to 1.92% for the main index.

Bright Ideas
As inflation is seen to moderate and markets anticipate rates to trend lower, don't wait for yields to go down further and consider bond funds and fixed payout products as part of your portfolio.

Daily Market Movements