Asian EM Sovs yields are a touch lower today, with INDON outperforming PHILIP curve. There has been little in the way of local headlines out this morning, while late yesterday the Indonesian FinMin mentioned they will be reducing bond issuances for the remainder of the year.

• The INDON curve has bull-steepened today, with yields 1-3bps lower, while the PHILIP curve has also bull-steepened with yields flat to 2bps lower.
• The PHILIP 2Y trades 7bps tighter than the INDON, while the remainder of the INDON curve trades inside PHILIP. the PH-US 10y spread diff is 84.5bps, while the ID-US 10yr spread is 83bps.
• Local currencies continue to trade near yearly lows, with the IDR 0.17% higher at 16,282, while the PHP is trading down 0.10% at 58.48.
• Indonesia's retail sales estimate increased by 4.4% year-over-year in June, compared to a revised 2.1% growth in May. On a month-over-month basis, retail sales rose by 2.1% in June, following a revised decline of 3.5% in May.
• Indonesian Finance Minister Indrawati announced during a parliamentary hearing on Monday that the government will reduce its bond issuance for the remainder of the year, despite projecting a higher fiscal deficit. The government plans to cut net bond issuance by 214.6 trillion rupiah ($13.2 billion), down from the initially planned 666.4 trillion rupiah. As of the first half of 2024, net bond issuance stands at 206.2 trillion rupiah.
• Philippines Finance Secretary Ralph Recto affirmed that the Philippines is on track to meet its 6% economic growth and revenue targets for the year, while considering yen-denominated bonds and anticipating additional revenue from pending tax measures and asset sales. Despite the risks of setting high GDP targets amid external challenges, the government remains committed to fiscal consolidation with no changes to the 2024 borrowing plan.
• Looking ahead, Wednesday we have Philippines Trade Balance data.