Market yields rose as traders demanded higher returns amid increasing US Treasury yields linked to renewed tensions in the Middle East.
Secondary‑market yields climbed on Tuesday, with participants trimming positions ahead of a seven‑year Treasury auction due to expectations of higher pricing.
Oil futures surged nearly 9% on Monday while equities fell after the United States and Iran reignited hostilities, disrupting shipments through the strategic Strait of Hormuz.
Tehran announced the closure of the strait, a vital artery for oil and gas transport. The United States responded by reinstating a blockade of Iranian shipping in the Gulf and indicated the waterway could be kept open for a fee, though control has remained contested since February.
The renewed blockade propelled oil prices higher, with US crude settling at $78.14 per barrel, up 9.4%, and Brent at $83.30 per barrel, up 9.6%.
Rising US Treasury yields reflected concerns that higher oil prices and geopolitical tensions could stoke inflation and influence Federal Reserve policy decisions.
The benchmark 10‑year yield increased 5.06 basis points to 4.62%; the 30‑year rose 3.31 basis points to 5.104%; and the two‑year note climbed 6.71 basis points to 4.275%, its highest level since February 2025.
In the Philippines, the Bureau of the Treasury aims to raise 410 billion pesos from the domestic market this month, allocating 250 billion pesos to Treasury bills and 160 billion pesos to Treasury bonds.
The government finances its budget deficit, capped at 1.659 trillion pesos or 5.4% of GDP for the year, through a mix of local and foreign borrowing.
