Home Blog Page 5602

Chinese director Zhang Yimou to oversee opening ceremony of 2022 Winter Olympics

BEIJING — Internationally acclaimed Chinese film director Zhang Yimou will oversee the opening and closing ceremonies of the 2022 Winter Olympic Games, state media said on Friday.

The Oscar-nominated director of Raise the Red Lantern, Hero, and The House of Flying Daggers is leading a team to design the show due to take place on Feb. 4, the official Xinhua news agency said. Mr. Zhang also directed the opening and closing ceremonies of the 2008 Beijing Olympics.

Rehearsals are underway for a pared down ceremony, without the large-scale artistic performances that marked the 2008 program, state television said.

Rather, technology will be used to make the opening ceremony “ethereal and romantic,” state television quoted Mr. Zhang as saying.

The program is designed to show the beauty of nature, humanity, and sport, and also inspire confidence in a pandemic ravaged world, it added.

Mr. Zhang, 71, told Xinhua that he felt the weight of responsibility, given the coronavirus disease 2019 (COVID-19) pandemic.

Mr. Zhang was also the mastermind behind the Beijing 2022 handover portion of the PyeongChang Olympics closing ceremony in 2018 and the Beijing 2008 handover portion of the Athens Olympics closing ceremony in 2004. — Reuters

PVL eyes 3 conferences in 2022 with season opener next month

DEFENDING champions Chery Tiggo lead by Jaja Santiago (16) in action. — PVL

THE Premier Volleyball League (PVL) is planning to hold not just one, but three conferences this year including the season-ushering Open Conference tentatively set next month either in Paco, Manila or Tagaytay.

“We’re looking at three conferences this year which will start with the Open Conference, hopefully, next month in a bubble set up,” said PVL president Ricky Palou on Sunday.

“We have Royale Tagaytay as our backup venue in case we won’t be allowed to hold our games in Manila,” he added.

Mr. Palou, who told The STAR he tested positive for coronavirus disease 2019 (COVID-19) along with some family members who are all in home quarantine, however, said the league would have to get the government’s nod.

“Of course, it will depend on the approval of the IATF (Inter-Agency Task Force) and GAB (Games and Amusements Board),” said Mr. Palou.

Mr. Palou also revealed that two new teams, including Pascual Laboratories, are knocking on the league’s door.

“Yes, they’ve approached us,” said Mr. Palou.

Currently, there are 10 teams seeing action in the 2022 season—defending champion Chery Tiggo, Creamline, Petro Gazz, Choco Mucho, Black Mamba Army, Perlas, PLDT Home Fibr, Bali Pure, Cignal HD and F2 Logistics.

The PVL Asian Invitational, the league’s second conference, is set July 2 to Aug. 7 while the Reinforced Conference is slated Oct. 1-Nov. 29 both at a still unspecified venue.

The Open Conference will run through three months, featuring a single-round robin preliminary round with the Top 4 clashing in a pair of best-of-three semifinal series. Winners will dispute the crown.

The second conference field will be divided into two groups for the single-round elims for local teams with the top two of each side mixing it up in another single-round phase.

The top three will advance to the next round that will feature the national team and two foreign squads.

The top four teams after another single round phase will move to the semis with the top two disputing the championship.

The final conference, meanwhile, will have a single-round preliminary round with the top four advancing to the semis and the eventual top two slugging it out for the title. — Joey Villar

Higher industry tier classification sought for energy efficiency projects

ENTITIES involved in energy efficiency (EE) projects have again called on government agencies involved in classifying projects for fiscal and other incentives to review an industry tier system before issuing specific guidelines for the endorsement of investments that will receive these perks.

In its recap of what transpired during a public consultation for a draft Department of Energy (DoE) circular, the Philippine Energy Efficiency Alliance (PE2) said that the department and the Board of Investments “should first quickly exhaust all opportunities within its policy mandate to reclassify all EE projects” as a Tier III economic activity.

Tier III projects are considered “critical to the structural transformation of the economy.” Among others, Tier III projects are granted a longer income tax holiday and enhanced deductions.

PE2 said the reclassification to Tier III from Tier I — or projects that are said to be “essential support to sectors critical to industrial development” — should be regardless of whether they are strategic or not.

It said the re-classification to Tier III economic activity would attract private sector investments.

“If the Tier III re-classification can immediately blanket all EE projects, ‘strategic’ or otherwise, then the requirement for separate endorsement guidelines for ‘strategic’ EE investments may no longer be required,” PE2 said.

“The energy efficiency sector is hoping that government policies enable the market to mobilize significant capital flows in the first decade along the 2040 pathway of bridging the P12-trillion energy efficiency capital gap,” PE2 President Alexander D. Ablaza told BusinessWorld in a Viber message.

Mr. Ablaza added that all sectors should work together to ensure that policies do not constrict capital flows given that the contribution of energy efficiency in the country’s clean energy transition is seen to be larger than that of renewable energy.

The alliance earlier said that the reclassification of EE projects from Tier I to Tier III is important to the structural transformation and industrial revolution of the economy.

In case a separate endorsement guideline is required, Mr. Ablaza recommended during the virtual meeting with the DoE on Dec. 22 that the proposed circular should shift the focus on the investing company to benefit from the incentives instead of the authorized person or entity with legal rights that is responsible for implementing the project, as stated in the initial draft.

Among the recommendations is the improvement of the language of the draft to make it accommodative to business model and investment innovations or new host entity or end user classes aside from innovative technologies.

“Introduce sufficient language affording flexibility for investment promotion agencies (IPAs) other than BoI to register and process the same set of fiscal incentives of EE projects in their respective jurisdictions,” Mr. Ablaza said, citing the Philippine Economic Zone Authority, a government agency in the Philippines attached to the Department of Trade and Industry, which promotes investments in the export-oriented manufacturing industry, as a possible agency to be promoted.

“The DoE has demonstrated a policy stance consistent with that of the energy efficiency sector. We need to see the same position upheld by BoI and Fiscal Incentives Review Board,” Mr. Ablaza said.

PE2 is a nonstock, nonprofit civil society organization that builds on the 11-year history of the Energy Service Companies Association of the Philippines and its successor, the Philippine Association of Energy Service Companies. — Marielle C. Lucenio

Peso seen to weaken ahead of trade data

BW FILE PHOTO

THE PESO could depreciate versus the dollar this week on expectations of a wider trade deficit and ahead of the announcement of the restriction measures to be implemented for the second half of January.

The local unit ended trading at P51.35 per dollar on Friday, shedding 17 centavos from its P51.18 close on Thursday, based on data from the Bankers Association of the Philippines.

Week on week, it also weakened by 35.1 centavos from its P50.999-a-dollar finish on Dec. 31.

The peso declined versus the dollar as investors were cautious over the rapid rise in infections in the country, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Daily infections climbed by 21,819 on Friday, based on data from the Department of Health. On Saturday, infections jumped by 26,458 to bring the active case tally to 102,017.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said hawkish signals from the US Federal Reserve made market players opt for the safe-haven greenback, causing the peso to depreciate.

Minutes of the Federal Open Market Committee’s monetary policy meeting last month showed officials identified both elevated inflation and the “very tight” labor market to support their view of possibly increasing interest rates sooner rather than later, Reuters reported.

For this week, Mr. Asuncion said the market will factor in trade balance data, which will be reported by the Philippine Statistics Authority on Jan. 11, Tuesday.

Latest data showed the country’s trade deficit widened to $4.02 billion in October from the $4-billion shortfall in September as well as the $2.05-billion gap a year earlier. This, as exports rose by 2% year on year to $6.41 billion, while imports jumped by 25.1% to $10.43 billion.

The trade deficit in the first 10 months of 2021 ballooned to $33.21 billion from a $20-billion shortfall in the same period of 2020.

Mr. Ricafort said investors will also continue to watch out for the trend in infections and the decision on restriction measures that will be in place after Jan. 15.

Metro Manila, Bulacan, Cavite, Rizal, as well as other cities and provinces across the country experiencing an infection spike are under the tighter Alert Level 3 until Jan. 15 to curb the spread of the virus.

For this week, Mr. Asuncion gave a forecast range of P50.90 to P51.40, while Mr. Ricafort expects the local unit to move within P51 to P51.50 per dollar. — Luz Wendy T. Noble with Reuters

Goodyear rolls out 70% sustainable-materials tire

PHOTO FROM GOODYEAR

THE GOODYEAR Tire and Rubber Company recently announced the release of a demonstration tire comprised of 70% sustainable materials, including what it called “industry-leading innovations.”

In a release, Goodyear Senior Vice-President for Global Operations and Chief Technology Officer Chris Helsel said, “We set an ambitious goal in 2020 to create a tire made 100% from sustainable materials in 10 years, and our scientists and engineers have made great progress toward that goal. This is an exciting achievement that demonstrates our commitment to increasing the use of sustainable materials in our tires.”

The aforementioned tire boasts 13 featured ingredients across nine different tire components, and the company’s performance indicators have shown the component properties to deliver “strong overall tire performance.”

Goodyear’s new tire features three different carbon blacks that are produced from methane, carbon dioxide, and plant-based oil. Initial life-cycle assessments have shown either reduced carbon emissions compared with current methods of carbon black production or the use of bio-based or waste feedstock sources. Carbon black is included in tires for compound reinforcement and to help increase their life and has traditionally been made by burning various types of petroleum products.

The company is also using soybean oil to keep the rubber compound pliable amid changing temperatures, a move that reduces the need for petroleum-based solutions. Even as nearly all soy protein is used in food/animal feed applications, a significant surplus of oil is left over and available for use in industrial applications.

Silica is an ingredient often used in tires to help improve grip. Goodyear’s new tire contains a unique variety of silica produced from rice husk ash, a byproduct of rice processing that is often discarded and put into landfills. A high-quality silica has been produced from this waste ash.

Lastly, polyester is recycled from plastic bottles and other plastic waste by reverting the polyester into its base chemicals and reforming them into technical grade polyester feasible for tire cords.

Goodyear’s 70% sustainable-material tire has been produced as a demonstration tire.

Quality-control AI at Dole Mindanao operation to see wider adoption 

PHILSTAR FILE PHOTO

By Revin Mikhael D. Ochave, Reporter

DOLE Sunshine Co., the international food company, said a quality control system using artificial intelligence (AI) which it pilot-tested at its Mindanao pineapple operation will be rolled out for wider use en route to its goal of zero fruit waste by 2025.

Barbara Guerpillon, global head of Dole Ventures, the conglomerate’s innovation arm that supports startup initiatives, said in an e-mail interview that the company’s AI-based quality control platform was developed by Israeli software company Clarifruit, which describes itself as a provider of quality control as a service (QCaaS) solutions.

“The objective is to make our internal processes more efficient and sustainable which, ultimately, we believe will impact our business bottom-line in the long run,” the Singapore-based Ms. Guerpillon said.

According to Ms. Guerpillon, the Clarifruit platform will help Dole achieve a 10% reduction in fruit losses by 2024, bringing the company closer to its ultimate target of zero losses.

She said the platform allows Dole to better match fruit sent to retailers to the latter’s requirements for shape, size, ripeness, and color, resulting in a lower customer rejection rate.

“Since implementing the Clarifruit software, Dole has seen a more than 2X productivity increase and reduction in error-prone quality control reports. While this technology does not directly help farmers, we were able to upskill our employees at the farm and enable them to use technology to improve their overall efficiency,” Ms. Guerpillon said.

Ms. Guerpillon said the AI quality control platform was piloted in early 2021 on Dole pineapples exported from the Philippines.

“The Clarifruit application was piloted by Dole’s quality control teams at the pre-inspection facility at Mindanao Island in the Philippines, from where our pineapples are exported to six key destination markets worldwide,” Ms. Guerpillon said.

“The success of the pilot led to the decision to scale our partnership with Clarifruit to other markets and fruit categories, including bananas, papayas, and avocados. On a more macro level, this will also help Dole cultivate a culture of innovation within the company while digitalizing our supply chain at its core,” she added.

Sidney Poitier, first Black actor to win best actor Academy Award, 94

Actor and Ambassador Sidney Poitier — PHOTO FROM NPS.GOV

SIDNEY Poitier, who broke through racial barriers as the first Black winner of the best actor Oscar for his role in Lilies of the Field, and inspired a generation during the civil rights movement, has died at age 94, Bahamas Prime Minister Philip Davis said on Friday.

“It is with great sadness that I learned this morning of the passing of Sir Sidney Poitier,” Mr. Davis said in a speech broadcast on Facebook. “But even as we mourn, we celebrate the life of a great Bahamian: a cultural icon, an actor and film director, an entrepreneur, civil and human rights activist and, latterly, a diplomat.”

Mr. Poitier created a distinguished film legacy in a single year with three 1967 films at a time when segregation prevailed in much of the United States.

In Guess Who’s Coming to Dinner he played a Black man with a white fiancée and In the Heat of the Night he was Virgil Tibbs, a Black police officer confronting racism during a murder investigation. He also played a teacher in a tough London school that year in To Sir, With Love.

Mr. Poitier had won his history-making best actor Oscar for Lilies of the Field in 1963, playing a handyman who helps German nuns build a chapel in the desert. Five years before that Mr. Poitier had been the first Black man nominated for a lead actor Oscar for his role in The Defiant Ones.

His Tibbs character from In the Heat of the Night was immortalized in two sequels — They Call Me Mister Tibbs! in 1970 and The Organization in 1971 — and became the basis of the television series In the Heat of the Night starring Howard Rollins and Carroll O’Connor.

His other classic films of that era included A Patch of Blue in 1965 in which his character was befriended by a blind white girl, The Blackboard Jungle and A Raisin in the Sun, which Mr. Poitier also performed on Broadway.

“If you wanted the sky I would write across the sky in letters that would soar a thousand feet high.. To Sir… with Love Sir Sidney Poitier R.I.P. He showed us how to reach for the stars,” Whoopi Goldberg, Oscar winning actress and TV host, wrote on Twitter.

“The dignity, normalcy, strength, excellence and sheer electricity you brought to your roles showed us that we, as Black folks, mattered!!!,” Oscar winner Viola Davis tweeted.

Mr. Poitier was born in Miami on Feb. 20, 1927, and raised on a tomato farm in the Bahamas, and had just one year of formal schooling. He struggled against poverty, illiteracy, and prejudice to become one of the first Black actors to be known and accepted in major roles by mainstream audiences.

Mr. Poitier picked his roles with care, burying the old Hollywood idea that Black actors could appear only in demeaning contexts as shoeshine boys, train conductors, and maids.

“I love you, I respect you, I imitate you,” Denzel Washington, another Oscar winner, once told Mr. Poitier at a public ceremony.

As a director, Mr. Poitier worked with his friend Harry Belafonte and Bill Cosby in Uptown Saturday Night in 1974 and Richard Pryor and Gene Wilder in 1980’s Stir Crazy.

Mr. Poitier was knighted by Britain’s Queen Elizabeth II in 1974 and served as the Bahamian ambassador to Japan and to UNESCO, the UN cultural agency. He also sat on Walt Disney Co.’s board of directors from 1994 to 2003.

STARTED ON STAGE
Mr. Poitier grew up in the small Bahamian village of Cat Island and in Nassau before he moved to New York at 16, lying about his age to sign up for a short stint in the Army and then working at odd jobs, including dishwasher, while taking acting lessons.

The young actor got his first break when he met the casting director of the American Negro Theater. He was an understudy in Days of Our Youth and took over when the star, Mr. Belafonte, who also would become a pioneering Black actor, fell ill.

Mr. Poitier went on to success on Broadway in Anna Lucasta in 1948 and, two years later, got his first movie role in No Way Out with Richard Widmark.

In all, he acted in more than 50 films and directed nine, starting in 1972 with Buck and the Preacher in which he co-starred with Mr. Belafonte.

In 1992, Mr. Poitier was given the Life Achievement Award by the American Film Institute, the most prestigious honor after the Oscar, joining recipients such as Bette Davis, Alfred Hitchcock, Fred Astaire, James Cagney and Orson Welles.

“I must also pay thanks to an elderly Jewish waiter who took time to help a young Black dishwasher learn to read,” Mr. Poitier told the audience. “I cannot tell you his name. I never knew it. But I read pretty good now.”

In 2002, an honorary Oscar recognized “his remarkable accomplishments as an artist and as a human being.”

Mr. Poitier married actress Joanna Shimkus, his second wife, in the mid-1970s. He had six daughters with his two wives and wrote three autobiographical books — This Life (1980), The Measure of a Man: A Spiritual Autobiography (2000), and Life Beyond Measure: Letters to My Great-Granddaughter (2008).

“If you apply reason and logic to this career of mine, you’re not going to get very far,” he told the Washington Post. “The journey has been incredible from its beginning. So much of life, it seems to me, is determined by pure randomness.”

In 2013 he published Montaro Caine, a novel that was described as part mystery, part science fiction.

In 2009, Mr. Poitier was awarded the highest US civilian honor, the Presidential Medal of Freedom, by President Barack Obama.

The 2014 Academy Awards ceremony marked the 50th anniversary of Mr. Poitier’s historic Oscar and he was there to present the award for best director. — Reuters

Dwight Ramos, Toyama Grouses split two home games

DWIGHT RAMOS — JAPAN B.LEAGUE

DWIGHT Ramos and the Toyama Grouses split their two-game homestand against Akita with a tough 80-64 loss in the Japan B.League amid a series of postponements due to coronavirus disease 2019 (COVID-19) health and safety protocols.

Mr. Ramos played limited action following a hard fall in the second period and finished with six points after sizzling for 22 markers in their 99-91 win on Saturday at the Toyama City Gymnasium.

Mr. Ramos suited up for only eight minutes and did not return to the game as the Grouses slid to 10-18 card behind Brice Johnson’s 17 points and 12 rebounds. Akita improved to 18-10.

Toyama will have a long break before plunging back to action against Mikawa on Jan. 22.

The B.League on Friday suspended multiple matches featuring the squads of other Filipino imports in Ray Parks, Jr. (Nagoya), Kobe Paras (Niigata), Javi Gomez de Liaño (Ibaraki), Matthew Aquino (Shinshu), Kiefer (Shiga) and Thirdy Ravena (San-en).

Prior to that, the Japanese league had also scrapped the All-Star Game scheduled in Okinawa this week.

The B.League said several players participating in the All-Star and in the regular season games are under protocols after either testing positive for COVID-19 or being close contacts. — John Bryan Ulanday

DHL Express continues drive for sustainable logistics, adds EVs to fleet

DHL Express Philippines Country Manager Nigel Lockett (left) and Senior Operations Director Promod George pose with three newly acquired electric vehicles as part of DHL’s mission to contribute to sustainability. — PHOTO FROM DHL EXPRESS

THREE ELECTRIC vehicles (EVs) were added to the DHL Express fleet in the Philippines which, the company said in a release, represent “a firm step toward the company’s goal of reducing environmental impact and promoting green logistics.”

The EVs conscripted into duty by the world’s leading international express service provider are built by BYD (Build Your Dreams), and can travel up to 250 km on a fully charged battery, and carry up to 3.5 cubic meters of payload. They will be deployed to deliver shipments in the Makati, Ortigas, and Pasay areas of Metro Manila.

BYD is a known manufacturer of zero-emission medium- and heavy-duty vehicles. It is also an in-house developer of core parts for electrified vehicles such as batteries, motors, and power electronics. It seeks to establish a complete, zero-emission ecosystem powered by clean energy, thereby reducing the world’s reliance on petroleum.

Said DHL Express Philippines Country Manager Nigel Lockett, “With our goal of reducing logistics-related emissions to zero by 2050, we are attempting to reach a larger milestone. The purchase of these electric vehicles is our first step towards greener logistics, which will benefit the environment, our customers, and our people.”

This effort is part of Deutsche Post DHL Group’s global vision to run 60% of its vehicles electrically by 2030, which is expected to strengthen its portfolio dedicated to EV logistics as well as the increased pace of decarbonization.

Added DHL Express Philippines Senior Director of Operations Promod George, “We are proud to bring this important and sustainable solution to our operations here in the Philippines. These new additions contribute two significant advantages to our fleet: reduced carbon emissions and lower operating costs.”

The company reported that transportation accounts for 15% of global CO2 emissions. With 95% of vehicles powered by gasoline or diesel engines, the most significant change that can be made is to switch to a greener mode of transportation, it added. Further, Deutsche Post DHL Group will invest a total of €7 billion over the next 10 years for CO2 reduction measures, including the further expansion of its zero-emission e-vehicle fleet.

Global food costs ease from near record, offering respite from inflation

REUTERS

GLOBAL food prices declined from near a record high at the end of last year, offering some respite to consumers and governments facing a wave of inflationary pressures.

A United Nations index tracking everything from grains to meat fell 0.9% in December, potentially helping to ease the run-up in prices of grocery store products. Still, the gauge remains near 2011’s all-time high and average prices jumped about 28% in 2021, the most in 14 years.

Prices have surged on the back of harvest setbacks and high freight rates, as well as labor shortages and an energy crisis that hit supply chains. Those issues will remain at the fore as farmers face uncertain weather and the prospect of fertilizer shortages in the months ahead. The costs have trickled through to supermarkets, piling pressure on officials and household budgets and worsening hunger, particularly in poor nations.

Food costs are unlikely to stabilize for a while yet, according to Abdolreza Abbassian, a senior economist at the UN’s Food and Agriculture Organization (FAO).

“Nothing fundamentally changed over the last two to three months to make us feel any degree of optimism that the food market is going to resettle at more steady or even lower prices,” he said. “All of the uncertainties are right there, they haven’t disappeared, which means that anything is still possible.”

The fall in food prices last month was mainly driven by vegetable oils and sugar, the FAO said on Thursday.

Anger over inflation recently led to violent protests in Kazakhstan, while Sri Lanka unveiled a $1-billion package to temper concerns over pricey food and medical items. Countries including Ukraine, Russia and Argentina have also taken steps to keep food costs in check.

Weather worries still abound across major crop suppliers, as the La Niña weather pattern disrupts typical growing conditions. Dryness in parts of Brazil and Argentina is trimming expectations for bountiful soy and corn harvests. In Malaysia, recent floods have inundated some palm-oil plantations. And Australia faced a November deluge that curbed the quality of its wheat.

The recent energy crunch has sent fertilizer prices higher too, threatening to further add to food-production costs. There are already signs that farmers are cutting back on nutrient purchases or shifting from grains to less fertilizer-intensive crops. Inflation is also contributing to the world’s hunger crisis, with higher prices for everything from fuel to housing cutting into what people can spend on food. Roughly a 10th of the global population was undernourished in 2020, when the COVID-19 pandemic hit — and food costs have jumped much more since then.

In other moves to combat rising prices or tight supplies, Thailand this week imposed a ban on hog exports until early April. US President Joe Biden promised to “fight for fairer prices” for farmers and consumers in a bid to tackle meat-price inflation, while purchase limits have been reintroduced in hundreds of Australian supermarkets as cases of the Omicron virus strain hobble supply chains. — Bloomberg

McDonald’s Japan slices fries to small size as it faces shipping snags

POLINA TANKILEVITCH/PEXELS

TOKYO — Japanese customers will have to settle for a small serving of McDonald’s fries for the next month or so after the fast-food chain said it was limiting portions due to shipping problems.

McDonald’s Holdings Company Japan said in a statement on Friday that the impact of flood damage on the port of Vancouver and other disruptions since last year would delay an expected shipment of potatoes from North America.

Global shipping operations continue to be severely affected by a mix of factors including coronavirus disease 2019 (COVID-19) pandemic lockdowns, extreme weather and a rapid recovery in demand.

As a result, McDonald’s said that from Sunday it would sell only S-sized fries for about a month “to make sure we have plenty of inventory and our customers can enjoy McDonald’s fries without interruption.”

The fast-food chain took the same step for a week at the end of December at its roughly 2,900 branches in Japan. — Reuters

Yields on government debt end mixed

YIELDS on government securities (GS) ended mixed last week following slower-than-expected inflation in December and the Treasury’s rejection of bids for its offer of reissued seven-year papers.

Bond yields, which move opposite to prices, declined by an average of 4.35 basis points (bps) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of Jan. 7 published on the Philippine Dealing System’s website.

The short end of the curve saw rates fall from their close on Dec. 31. Yields on 91- , 182- and 364-day papers went down by 8.72 bps, 10.7 bps, and 9.71 bps to fetch 1.0073%, 1.1623%, and 1.5626%, respectively.

The belly of the curve was mixed as the rates of two- and three-year Treasury bonds (T-bonds) also declined by 7.69 bps and 1.71 bps to 2.6012% and 3.234%, respectively.

Meanwhile, the four-, five-, and seven-year T-bonds increased by 3.53 bps, 5.48 bps, and 6.9 bps to yield 3.8043%, 4.2514%, and 4.7001%, respectively.

Yields on long-dated papers were likewise mixed. The 10-year paper inched up by 0.35 bps (4.8257%), while 20-year and 25-year notes went down by 12.64 bps (4.9644%) and 12.95 bps (4.9545%).

“Bulk of recent trading activity was concentrated on the front end (one- to three-year tenors) and the liquid on-the-run five-year RTB (retail Treasury bond),” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said in an e-mail interview.

The bond market was “initially more defensive” as the Bureau of the Treasury (BTr) rejected all bids for the reissued seven-year papers earlier last week, he said.

“Continued deceleration in inflation for December 2021…fed buying sentiment which focused on the five-year [bond] despite a move higher in global rates,” Mr. Liboro added.

In a separate e-mail interview, a bond trader noted that government yields fell last week as local participants “generally remained cautious” amid the rising local coronavirus disease 2019 (COVID-19) cases and the threat of the Omicron variant.

The trader added that aside from the lower-than-expected December inflation print, the BTR’s bid rejection “minimized activity in the domestic bond market” last week.

On Tuesday, The Treasury did not accept any tenders for the reissued seven-year bonds, which have a remaining life of six years and seven months, as asking rates became “unreasonably high” despite slower inflation. 

Offers for the paper amounted to P41.42 billion, lower than the P52.267 billion when the bond series was last offered on Dec. 14 which also got rejected during that period.

Had the Treasury fully awarded the bonds, the average yield would have fetched 4.814%, higher by 34.6 bps from 4.468% at the previous offering.

Meanwhile, headline inflation for the month of December eased to its lowest in a year to 3.6% in December from the recorded 4.2% in November as food and transport costs slowed.

Inflation that month was lower than the median 3.9% forecast in a BusinessWorld poll.

The December print brought the full-year average to a three-year high of 4.5%, breaching the 2-4% central bank target band as well as the revised 4.4% forecast.

Meanwhile, Metro Manila and other areas are currently under stricter Alert Level 3 to contain the surge of new infections amid the threat of the highly mutated Omicron variant of the disease.

For this week, the bond trader expects local yields to fetch higher as market waits for the results on the inflation data in the United States, which might bolster for a faster US Federal Reserve tightening with the possible policy rate hike in March.

For his part, Mr. Liboro said market players will take their cues from local catalysts.

“Although we expect global rates to continue to climb gradually higher — impact on local rates is likely to be minimal unless we see sharp spikes higher over the short term,” he said.

As market remains wary of the domestic inflation over the medium term, the December data has calmed sentiment for now, Mr. Liboro said. He added that the market will be focusing on the upcoming auction for the four-year bonds.

“We expect there to be decent interest on the four-year [bonds] with investors opting to focus on five-year and shorter tenors for now.”

The Treasury will offer on Tuesday the reissued five-year papers, with remaining life of four years and two months, worth P35 billion. — Abigail Marie P. Yraola