Philippine bonds surged after an interim US‑Iran deal, sparking the largest rebound in emerging‑Asia fixed income.

Western Asset Management and William Blair Investment Management warn that oil prices will stay high and El Niño supply shocks will keep the Bangko Sentral ng Pilipinas hawkish.

These conditions create a bearish backdrop for the peso‑denominated market, suggesting the recent price lift may be temporary.

Investors face a trade‑off: short‑term gains versus long‑term inflation and monetary tightening risks, underscoring the need for careful portfolio rebalancing.