Philippine Bonds Slump on Fitch Rating Statement: World's Biggest Mover

(Bloomberg) -- Philippine bonds dropped, the
biggest fluctuation of any government debt market today, after
Fitch Ratings said the nation's fiscal deficit may almost double
this year due to lower-than-expected revenue. The peso fell.

Seven-year yields rose to highest in more than a week as
Fitch today said the budget deficit may reach 125 billion pesos
($2.8 billion) this year without asset sales, leaving the
government with less funds to spend on public works needed to
boost economic growth. President Gloria Arroyo, in an annual
address yesterday, reiterated plans to build more roads, ports
and bridges while lowering the cost of doing business.


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Philippine Government Bonds Rise on Growth, Inflation Outlook; Peso Falls

(Bloomberg) -- Philippine bonds rose after the
government said the economy may grow faster than expected this
year as an appreciating peso cuts interest payments on the its
debt, freeing up capital for spending.

A 6.3 percent gain in the peso this year may save 23.8
billion pesos ($515.7 million) in interest, Budget Secretary
Rolando Andaya said in an interview in Manila.


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Philippine Bonds Drop, Peso Advances, as Central Bank Curbs Money Supply

(Bloomberg) -- Philippine bonds fell, the biggest fluctuation among government debt markets today, after the central bank introduced new rules to curb growth in money supply. The peso strengthened.

Five-year bonds fell the most in at least a month after Bangko Sentral ng Pilipinas yesterday expanded access to its deposit accounts with higher interest rates to government pension funds, state-owned companies and some investment trusts. They were previously available only to banks. The central bank held its overnight policy rate at 7.5 percent and maintained lower payments for larger deposits.


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