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Need sportiness? Dial 4

The BMW 4 Series Coupe is now here

DISCERNING MOTORISTS who seek a heightened level of car athleticism and exclusivity are in for a treat, as SMC Asia Car Distributors Corp. — the country’s official importer and distributor of BMW vehicles — recently launched the much-anticipated BMW 4 Series Coupe in the Philippines. The 4 Series is the sister model of BMW’s highly popular 3 Series; also manufactured in Munich but set apart via its knack for greater sporting ability and driving exclusivity.

The new BMW 4 Series Coupe now takes a significant design departure from the 3 Series — characterized by its controversially large, front kidney grille (which is inspired by the 1930s BMW 328) — in order to better distinguish the two models from each other. It is now locally available in two variants: the 420i Model Advantage and the 420i M Sport.

Both are equipped with a 2.0-liter BMW TwinPower turbo four-cylinder gasoline engine paired with an eight-speed Steptronic automatic transmission (Steptronic Sport transmission in the M Sport variant). The said engine offers a robust 184hp and 300 Nm of torque.

This second-generation BMW 4 Series Coupe now flaunts greater exterior dimensions than its predecessor, and is specifically 128mm longer, 27mm wider and 6mm taller — though in comparison to the 3 Series sedan, it is 57mm lower. The 420i M Sport variant is fitted with a special M Sport suspension that lowers the vehicle by 10mm. Moreover, the new 4 Series tracks are now 28mm wider at the front and 18mm wider at the rear — making it also 23mm wider than those of the current BMW 3 Series.

Inside the cabin are ergonomic sport seats which in the 420i Model Advantage are wrapped in Sensatec leather; while in the M Sport variant are special M Sport seats with lumbar support, upholstered with Leather Vernasca. The former comes with a newly designed, multifunction sport leather steering wheel; the latter carries an M Leather steering wheel and special M Seat belts. The start/stop button is now located in the center console.

Meanwhile, the rear seats are split 40:20:40 and the individual sections can be controlled to fold or release via a button in the boot. Speaking of which, its storage capacity is 440 liters — not bad for a sporty vehicle with a tapering roofline.

The 4 Series Coupe carries BMW’s standard Live Cockpit Plus, which is comprised of a central iDrive control center via an 8.8-inch display supported with a touch controller; and a black panel instrument cluster positioned around a 5.1-inch color display with multimedia and navigation systems. Ready for plugging into are two USB ports. Apple CarPlay, Android Auto, and a BMW Intelligent Personal Assistant are standard.

The all-new BMW 4 Series Coupe is equipped with LED headlamps, fog lights, and rear lights. The Model Advantage is fitted with 18-inch light alloy wheels with run-flat tires; while the M Sport shows off with its high-gloss shadow-line trim alongside its 19-inch M light alloy wheels with run-flat tires.

The BMW 420i Model Advantage is available for P3.99 million, while the 420i M Sport is priced at P4.59 million. Of course, both variants come with BMW Philippines’ standard five-year/200,000-km (whichever comes first) manufacturer’s warranty — the leading standard in after-sales care in the premium automotive segment in the country.

Camera ready in 10 minutes

IT’S been almost a year since the lockdowns started — I have spent almost an entire year indoors — and that understandably changed the way we lived our lives. In this writer’s case, one of the biggest changes came in how I have tailored my makeup routine towards attending online meetings, with a focus on being camera-ready in less than 10 minutes but with the staying power of an entire workday.

And if you are on the hunt for the products that suit that very specific category, here are my recommendations.

(Disclosure: all the products mentioned were given to this writer by the brand.)

ANASTASIA BEVERLY HILLS MINI SOFT GLAM II EYE SHADOW PALETTE (P1,636 IN SEPHORA.PH)
For its 2020 holiday collection, American makeup brand Anastasia Beverly Hills eschewed its usual full-sized palettes and products, preferring to put out mini versions of its cult-classic products, one of which is the Mini Soft Glam II palette. The brand explained that the holiday collection was meant to be “glam, portable, giftable” which explains the minis — it’s the perfect stocking stuffer.

And what a beautiful stocking stuffer it is as the eight-pan palette combines six shades from the neutral Soft Glam palette and two shades from the purple Norvina palette (both were released in 2018). It’s the perfect on-the-go palette and this writer found so much use for it during workdays because having eight shades to choose from instead of 16 makes the entire full-face process go faster.

I find myself going for Incense, a dusky terracotta shade, for my entire lid followed by Mulberry, a dark purple-red color, for my crease, and Sultry, a metallic warm chocolate brown, at the center of my lid. Sultry is my favorite shade because it makes my eyes pop through the webcam. Sometimes when I’m feeling particularly lazy or pressed for time, I just go for Incense and use Noir, a carbon black color, as my eyeliner and I’m set for the day.

I think the palette is also perfect for those who are just starting to use makeup and who want to experiment with how to layer eyeshadows because the eight pans help people decide on a color story easily.

ANASTASIA BEVERLY HILLS BROW FREEZE BROW STYLING WAX (P1,500 FOR 8 GM AT SEPHORA.PH)
I was never the person who would think eyebrows were the make-or-break part of my makeup routine because I have been fortunate to have decent brows (a tad short but I can live with it). I usually just extend my short brows slightly with a brow pencil, brush it to blend, and call it a day. But most of the time, I see my brows droop to their regular downward placement by midday and this is where the Brow Freeze helped a lot. The styling wax is inside a tiny pot and you’ll need a spoolie to apply it — once applied, it freezes your brows into place so it still looks pretty. I really do like this product because it’s easy to use and a little goes a long way. A trick I like is using the wax on my brows before applying a pencil as it makes for a more natural look.

READY SET GLOW GLITTER LINERS (P395 AT READYSETGLOW.PH)
Local beauty brand Ready Set Glow has been trying to make a name for itself in the realm of fun, playful makeup. Its current catalog focuses on eye makeup with a considerable collection of colored liners and, now, glitter liners. It also has a lip collection, but currently its eye products are far more interesting.

In February, the brand released its glitter liner line in four colors: Glitter Gray (a metallic gray), Hazel Dazzle (a coffee-colored glitter liner), Pink Diamond (a pinkish brown), and Orange Sparkle (a copper).

I recommend that you shake it before use because sometimes the product needs a bit of motivation to get going. But what really enamored me with the product is the fact it really does have glitter. While the color payoff doesn’t really translate well on camera, it gives me joy to look at the mirror and see that, yes, my liner glitters.

It also stays put all day and is removed easily (without glitter residue) with a good oil-based or balm cleanser.

People who are allergic to glitter may want to look for alternatives, but for those who like to sparkle, I would highly recommend these products.

 

Zsarlene B. Chua is a former BusinessWorld reporter who wrote extensively on beauty. She now works in public relations. Her company has no clients in the beauty industry.

PEZA probes 2 cigarette makers without BIR registration

THE Philippine Economic Zone Authority (PEZA) is investigating two locators found to have been manufacturing cigarettes without registration with the Bureau of Internal Revenue (BIR).

The BIR last week said it would withdraw the tax-stamp exemption of cigarettes manufactured for export, after a legislator said these products could enter the market as tax-free smuggled goods.

Revenue Regulations (RR) No. 9-2015 allows cigarette exporters to omit the required tax stamp proving payment of excise taxes.

PEZA said that GB-BEM Cigarette Co. Inc. and GB Global Exprez Inc. facilities had been raided by the BIR for operating without registration and permits required for cigarette manufacturing. The companies are being investigated by the BIR and the House Committee on Ways and Means.

The investment promotion agency said it would apply its own penalties after its separate investigation.

Legislators at a committee hearing last week said PEZA had been lax in allowing locators to manufacture cigarettes without BIR permits.

PEZA said that the agency is in talks with the BIR and Finance department to ensure ecozone locators’ compliance with government requirements. — Jenina P. Ibañez

Hog farmers call for higher pork SRP instead of price ceilings

THE one-month-old price controls for pork need to be replaced by higher suggested retail prices, representatives of the hog farming industry said.

Edwin G. Chen, president of the Pork Producers Federation of the Philippines, said in a mobile phone message that a suggested retail price (SRP) for pork ranging from P330 to P360 per kilogram be set for Metro Manila markets.

“The price ceiling should be changed to an SRP instead. Then monitoring teams from the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) can be sent to wet markets to check prices,” Mr. Chen said.

“This will prevent profiteering. Also, we will police our own ranks to avoid high prices,” he added.

Mr. Chen said that on Feb. 27, the industry expressed its willingness to the Department of Agriculture (DA) to adopt an SRP scheme of P330 to P360 per kilogram of pork.

“The P330 to P360 per kilogram will be the upper limit. Pork shoulder (kasim) can be priced at P270 to P330 per kilogram, while pork belly (liempo) can be at P300 to P360, without the DA transport subsidy” Mr. Chen said.

“A price ceiling without proper consultation will result in an unsuccessful effort,” he added.

President Rodrigo R. Duterte signed Executive Order (EO) No. 124 on Feb. 1 in response to rising retail pork prices, capping the retail price of pork and chicken sold in Metro Manila markets. The EO was implemented on Feb. 8, a week after its signing, to provide a grace period for the hog industry.

Under EO 124, the price of kasim was set at P270 per kilogram; liempo at P300 per kilogram; and whole chicken at P160 per kilogram.

Separately, the DA said the total live hog deliveries to Metro Manila have hit 124,537 since the implementation of the price ceiling on Feb. 8. The DA’s response to rising pork prices was to encourage farmers in distant provinces to ship hogs or carcasses to Metro Manila, with a subsidy on shipping costs serving as inducement.

In its latest report, the DA said 5,506 live hogs were delivered to Metro Manila on March 5. The shipments included 2,350 live hogs came from Batangas, Rizal, and Quezon, with South Cotabato and General Santos providing 1,542 hogs, and Bulacan and Tarlac 398.

Other areas that shipped live hogs were Oriental Mindoro with 367, Bukidnon 350, Negros Oriental 260, and Camarines Sur and Sorsogon 239.

The DA said 31,826 kilograms of pork in carcass form were shipped from Central Luzon on March 5.

Since Feb. 8, the total carcass deliveries have hit 785,043 kilograms, mostly from Central Luzon. — Revin Mikhael D. Ochave

Cybercrime to increase further as transactions shift online

PHILIPPINE BUSINESS GROUPS on Sunday said the impact of cybercrime could hit $6 trillion this year and up to $10.5 trillion annually by 2025, as the use of online platforms for financial transactions continues to grow.

The shift to online platforms “gave rise to heightened activity by cybercriminals,” the business groups said in an e-mailed joint statement.

“As reported by Cybersecurity Ventures, the impact of cybercrime is expected to reach $6 trillion in 2021 and rise to $10.5 trillion annually by 2025,” they said.

At least 25 groups, including the Bankers Association of the Philippines, American Chamber of Commerce of the Philippines, British Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, and the Chamber of Thrift Banks, signed the joint statement.

Citing data from the Philippine National Police Anti-Cybercrime Group, the groups said there were 869 online scams recorded from March to September last year, 37% higher than the 633 incidents recorded in the same period in 2019.

They said the number is expected to rise further.

“Phishing, smishing, vishing and other online fraud schemes target bank clients, credit card holders, e-wallet accounts, online shopping and other users of online financial services,” they said.

They noted such incidents happen because users often ignore or forget firms’ notices and warnings.

“We strongly urge the public to heed these notices and warnings not only for their sake but also to preserve the stability and trust in our financial system, which are so essential for our journey towards economic recovery and normalcy,” they said.

A massive information drive is needed to help strengthen the financial system’s defenses against cybercriminals, they added.

“It is also paramount that law enforcement agencies act swiftly in identifying, apprehending, and bringing these culprits to justice. We call upon the public and private sectors to join forces in this fight against cybercrimes in the financial system.”

Internet security firm Kaspersky has said new cyberattack strategies are expected to emerge this year.

It also noted that Filipino internet users who encountered online credit card skimmers increased by 20% last year. — Arjay L. Balinbin

Suzuki breaks ground on new Davao del Sur dealership

SUZUKI PHILIPPINES will add to its network of dealerships as it broke ground on the site of a new facility soon to rise on General Douglas MacArthur Highway, Talomo, Davao City in Davao del Sur.

Suzuki Auto Matina is Autocentrale Group’s sixth dealership, and will be built on a 3,000-sq.m. parcel of land. The facility will feature a showroom accommodating up to seven vehicles, and eight work bays to enable efficient and high-capacity servicing. The new dealership is expected to answer the rising market demand in the Davao region, and provide the community in the area with quality Suzuki service.

A virtual groundbreaking ceremony was led by Cebu Autocentrale Corp. President Brian Chua, Managing Director Deborah Chua, and Suzuki Philippines Vice-President and General Manager for Automobiles Keiichi Suzuki. “We in Suzuki Philippines are optimistic that the new Suzuki Auto Matina will attain its goals in the many years to come, and will definitely strengthen our presence with our growing market in Davao. This new dealership solidifies the team’s commitment to provide quality service and offer only the best of Suzuki’s top-notch products,” said Mr. Suzuki.

Suzuki Auto Matina is expected to open early next year. Currently, Cebu Autocentrale Corp. operates five dealerships: Suzuki Auto North Cebu, Suzuki Auto SM City Cebu, Suzuki Auto Mactan, Suzuki Auto SM Consolacion, and Suzuki Auto Cagayan de Oro. For more information, visit http://suzuki.com.ph/auto, like SuzukiAutoPH on Twitter, and follow on @suzukiautoph on Instagram.

Bee beauty

A FAMILY legacy and personal skin problems led to the creation of Singaporean skincare brand BSKIN, which is launching its Eye Care Multi-Tasking Power Serum in the Philippines.

Taking inspiration from her family’s business, the HDI Family of Companies which produces bee wellness products, BSKIN (pronounced as “bee skin”) founder and CEO Su-Mae Chia started her own skincare business in 2015. BSKIN uses bee-based active ingredients such as honey extract, pollen extract, and royal jelly.

The 31-year-old corporate lawyer turned business owner had struggled with skin issues when she was younger. “I was really obsessed with concealing the imperfections of my skin with makeup when really I should have been focusing on my skin health,” Ms. Chia explained during a press launch via Zoom on March 3.

The eye serum’s unique formulation contains a proprietary blend of Jeju spring water, and natural extracts of honey, royal jelly, propolis, and pollen — the same ingredients found in the products of HDI.

Ms. Chia explained the benefits of each ingredient starting with honey, which is a humectant which draws moisture for the skin; royal jelly, which is a protein-rich substance from which improves skin elasticity; propolis, an emollient with anti-bacterial and anti-ingflammatory properties; and bee pollen, which “stimulates skin tissue growth.”

The Eye Care Multi-Tasking Power Serum claims to “reverses signs of aging, erases dark circles and pigmentation, decongests and reduces puffiness, and prevents skin dryness.” It contains no chemical preservatives and artificial fragrances, and is not tested on animals.

Ms. Chia stressed that the area around the eye has the thinnest skin on the face and contains less sebaceous glands which makes it susceptible to dryness, puffiness, and dark circles.

“[The eye serum] creates a protective layer over your skin to lock hydration for an extended period without leaving a greasy, sticky feel,” Ms. Chia said. “We chose a gel consistency [for its formulation] as we wanted a product that will not clog your pores or cause milia (small cysts or milk spots around the eye area).”

“It’s a common misconception that eye care products are only for when you are much older,” said Ms. Chia, who suggests that people start applying eye serum at age 21 to “delay the aging process.” She also suggests using the eye serum before applying makeup, in addition to applying it before going to bed in the evening.

The BSKIN Eye Care Multi-Tasking Power Serum is priced at P5,332 and is available at the BSKIN Philippines website ph.bskin.com and its official Facebook page www.facebook.com/bskinph and Lazada. — Michelle Anne P. Soliman

Court allows review of P6.8-M tax penalty on Del Monte Philippines

THE Court of Tax Appeals has allowed a review of the P6.8-million penalty levied by the Bureau of Internal Revenue (BIR) on Del Monte Philippines, Inc. (DMPI) for its December 2013 income tax.

DMPI mistakenly paid for its December income tax worth P26.9 million using the filing reference number of its income tax for the previous month, thus doubling its tax payment for November.

In January 2014, DMPI paid its December 2013 tax using the correct filing reference number, as advised by BIR.

However, in February 2014, BIR assessed DMPI for surcharge, interest, and compromise penalty amounting to P6.8 million for its 2013 late payment.

BIR later denied DMPI’s application for abatement or cancelation of the penalty.

DMPI subsequently filed a petition for review of the BIR’s decision before the court in division, which was granted.

The CTA, in its decision dated Feb. 19, then denied the petition of the Commissioner of Internal Revenue for review of the said court’s decision “for lack of merit.” — Bianca Angelica D. Añago

Davao coconut processing plant may export to China

DAVAO CITY — Investors from the Chinese province of Hainan are planning to set up a coconut processing plant in Davao City, the first of various ventures and trade arrangements that were initially discussed in 2019.

Sebastian L.  Angliongto, international relations committee chair of Davao City business chamber, said the potential investment will come from members of the Hainan International Export Cooperative Association (HIECA).

He said HIECA’s international relations committee chair has informed him that the investors are considering operations like making charcoal, oil, juice, and other coconut products for export to China.

“Hainan investors will come to Davao City to invest in the fruit processing plant and export the finished products to Hainan,” Mr. Anglionto said in a phone interview last week.   

Other ventures being considered involve other tropical agricultural products shared by the two partner regions. Hainan’s main crops include coconuts, rice, sisal, and tropical fruits.

Over the long term, the Chinese businesses are considering an industrial park and other real estate investments. — Maya M. Padillo

Maxus shaves P50K off T60 price

MAXUS PHILIPPINES is offering its pickup product, the T60, at P50,000 off for all variants. The T60 Pro 4×2 MT is now priced at P948,000, the T60 Pro 4×2 AT at P1.028 million, and the T60 Elite 4×4 AT at P1.278 million.

The brand positions the T60 as one that can “accommodate the varying needs of Filipino pickup owners whether for city or countryside driving.” It bears upsized dimensions, and promises enhanced comfort and capability in terms of legroom, payload capacity, towing power, and wading depth.

Maxus also says the T60 is the longest in its class. Powered by a 2.8-liter turbodiesel engine with variable geometry turbocharger and Drive Mode Select, drivers can access the performance through a six-speed manual or automatic transmission producing maximum power of 150ps at 3,400rpm and maximum torque of 360Nm at 1,600-2,800rpm propel the vehicle with ample power, efficiency, and reliability.

Standard exterior features of the T60 include automatic headlights, rain-sensing wipers, front and rear fog lamps and electric outside rearview mirror; LED headlights with daytime running lights are available for the 4×4 variant.

The car-like cabin design of the T60 are highlighted by a touchscreen monitor, multifunction steering wheel with cruise control, and keyless entry. The T60 Elite 4×4 comes with additional interior amenities such as leather seats, power driver seat, push start button, 10-inch touchscreen with six-speaker infotainment system, and auto air-conditioning. It also comes in various unique color options ranging from Agate Red, Lava Gray, and Blanc White for the T60 4×2 Pro, Olive Green and Aurora Silver for the T60 4×4 Elite, while Obsidian Black is available for both variants.

All Maxus vehicles boast a five-year/100,000-km warranty and periodic maintenance service (PMS) interval schedule 15,000 km (or once a year, whichever comes first) after the first 5,000 km. Maxus Philippines also offers a 24/7 emergency roadside assistance.

For more information about the Maxus T60 4×2 Pro and 4×4 Elite, visit www.maxus.com.ph or book a test drive at any Maxus Philippines dealership. Like and follow the Maxus Philippines Facebook page and Instagram account, @maxusph.

Investors take profit after new Greenergy fintech venture

By Jobo E. Hernandez, Researcher

FINTECH partnership spree of Antonio L. Tiu-led Greenergy Holdings, Inc. in the past few weeks fueled speculation that pushed the stock to record high, prompting market players to take profit as soon as the latest deal was disclosed.

A total of 163.01 million Greenergy shares worth P739.59 million were traded from March 1 to 5, data from the Philippine Stock Exchange showed.

The stock dipped by 6.3% on a week-on-week basis to P4.31 apiece last Friday from its P4.60-per-share close on Feb. 26. Since the start of the year, the stock has jumped by 67.1%.

“Greenergy has been exceptional these past few weeks,” Mercantile Securities Corp. Analyst Jeff Radley C. See said in an e-mail last week.

“The company continues to give growth to its shareholders through various acquisitions and partnerships. They are gearing towards industries that the country lacks like e-payment, transportation, and medicine,” he said.

“With these, markets have reacted bullishly that’s why prices continued to trend up and trading at 13-year high,” he added.

Investors’ bought Greenergy for weeks as they speculated its fintech ventures, which is the main reason for the stock’s wide trading range, according to Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio.

“Once news broke and Greenergy fully disclosed its plans, a lot of the investors took profits considering Greenergy’s share price was up 90% year-to-date at one point,” she said in an e-mail.

In a disclosure last Monday, Greenergy signed a term sheet buying ABS-CBN Corp.’s stake in U-Pay Digital Technologies, Inc. — the broadcaster’s joint venture with iBayad Online Ventures, Inc. — to the tune of P54 million, which would result in the Tiu-led holding firm owning 51% of the fintech company.

U-Pay is engaged in e-commerce as well as a licensed electronic money issuer by the Bangko Sentral ng Pilipinas.

Shares in Greenergy hit its peak on March 2 when they reached P4.94 apiece during trading, later finishing at P4.83 per share — a record high dating back to 2009.

Last Feb. 23, Greenergy entered into a share subscription agreement with manufacturing and trading firm Ocean Biochemistry Technology Research, Inc. (OBTRI) worth P3.75 million. Once the shares have been issued, it will own 60% of OBTRI.

Prior to the deal, OBTRI is 51% owned by M2000 Imex Co., Inc., a wholly owned subsidiary of another Tiu-led listed firm AgriNurture, Inc.

Meanwhile, Greenergy confirmed to the local bourse last Feb. 19 that it was in “advanced stage of negotiation” with Singapore-based fintech firm Aleta Planet Pte. Ltd. for their proposed partnership, which includes issuance of co-branded virtual accounts and remittance services.

Greenergy entered into an agreement last January with ITBS Information Technology Business Solutions to incorporate the former’s ePitaka payment platform with the latter’s Know Your Citizen platform installed in various local government units in the Philippines.

Analysts said these ventures are yet to materialize in Greenergy’s earnings in the near term as these deals are still in the initial stages.

“While the acquisition will prove profitable in the future, it likely won’t materialize in Greenergy’s earnings in the near term yet,” Ms. Agravio said.

“Greenergy can provide a variety of products to offer to the market,” Mr. See said.

Likewise, he does not see the deals influencing the company’s profitability yet as “the plans are still in the initial stages,” he added.

Greenergy is businessman’s Mr. Tiu’s diversified holding firm with interests in renewable energy, agriculture, real estate, information and technology, and waste management.

Its attributable net loss narrowed to P15.15 million in the nine months to September last year from P18.07-million loss in 2019.

For this week, Mr. See pegged the stock’s support levels at P3.50 and P3.80, while resistance levels will be at P4.60 and P4.94.

Ms. Agravio placed Greenergy’s support range at P3.70 to P3.90 and resistance at P4.60.

Yields on government debt increase

YIELDS ON government securities (GS) went up last week as inflation continued its uptrend to reach a 26-month high in February.

GS yields, which move opposite to prices, rose by an average of 12.92 basis points (bps) week on week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of March 5 published on the Philippine Dealing System’s website.

Yields on benchmark tenors increased on Friday from their Feb. 26 finish, except for those on the four-, five-, and seven-year Treasury bonds (T-bonds), which declined by 0.46 bp, 2.59 bps, and 0.25 bp, respectively, to 2.7486%, 3.0011%, and 3.4789%.

The largest increases were observed in the long end of the yield curve, particularly the 20- and 25-year T-bonds which saw their rates go up by 41.06 bps (to 4.8707%) and 55.84 bps (4.8716%), respectively. The yield on the 10-year debt paper also increased by 8.76 bps to 3.9806%.

Meanwhile, the two- and three-year T-bonds were quoted at 2.185% and 2.4865%,  respectively, rising by 6.99 bps and 3.29 bps.

The shorter termed Treasury bills (T-bills) likewise posted increases in their yields. This was led by the 364-day paper’s 12.79-bp increase to 1.6834%. The 91-day T-bills also rose by 8.54 bps (to 1.0816%) and the 182-day securities added 8.19 bps (1.195%).

“Yields inched up further as investors await the February inflation data which came out at 4.7%, broadly in line with estimates but still faster than the previous month… The recent uptick in prices put upward pressure on yields and effectively on the government’s borrowing cost,” First Metro Asset Management, Inc. (FAMI) said in an e-mail.

“Inflation erodes your real interest rate. As investors’ inflation expectations adjust higher, yields will continue to move higher in the secondary market as well,” ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro said.

The 4.7% headline inflation rate in February marked the fifth straight month of acceleration in the rise in prices of goods, the Philippine Statistics Authority reported on Friday. The figure was also the fastest in 26 months or since the 5.1% rate in December 2018.

The February result was within the Bangko Sentral ng Pilipinas’ (BSP) forecast range of 4.3%-5.1% for the month. It brought the year-to-date inflation average to 4.5%, also higher than the BSP’s 2-4% target for the year.

BSP Governor Benjamin E. Diokno has said the rise in inflation was caused by supply side shocks and would not merit a monetary response “unless they lead to second-round effects.”

The BSP Monetary Board at its meeting on Feb. 11 kept key interest rates unchanged at record lows. Its next review will be on March 25.

The central bank last year slashed rates by a total of 200 bps to provide support to the virus-stricken economy. This brought down the overnight reverse repurchase, lending, and deposit rates to record lows of 2%, 2.5%, and 1.5%, respectively.

“While we saw some signs of stabilization on the belly (five- to seven-year T-bonds) of the yield curve towards the end of the week, we expect upward pressures to persist,” ATRAM Trust’s Mr. Liboro said.

Meanwhile, FAMI expects the market to “remain defensive and take directional cues” from this month’s T-bond auctions.

“The movements in the US Treasuries (USTs) will also influence sentiment in the local GS space. USTs continued to sell off as [US Federal Reserve Chair Jerome Powell’s] recent speech did not mention greater quantitative easing in response to the recent rise in Treasury yields. The US 10-year yield now hovers above 1.5%,” FAMI added.

The Treasury is looking to borrow P160 billion from the local market this month: P100 billion via weekly T-bill auctions and P60 billion in fortnightly offerings of T-bonds. It is offering seven- and 10-year bonds worth P30 billion each, scheduled to be auctioned off on March 9 and 23, respectively.

Meanwhile, Mr. Powell made his remarks at a virtual Wall Street Jobs Summit last Thursday (1:05 a.m. local time), which is likely his last public event before Fed officials meet on March 16-17. While his speech reiterated the intention to keep benchmark interest rates low until employment and inflation targets have been met, he made no mention of plans to keep US Treasuries from rising, leading these debt papers to increase further. — Ana Olivia A. Tirona

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