By The Financial District
Nov 30, 20231 min
The Philippines' currency bond market expanded in the third quarter due to increased issuances from the government and the Bangko Sentral ng Pilipinas (BSP), according to the Asian Development Bank (ADB).
The ADB predicts the central bank will maintain its tightening policy until inflation falls within the target. I Photo: Eugene Alvin Villar (seav)
Outstanding central bank securities grew by 44.8% quarter-on-quarter as the BSP addressed excess liquidity resulting from lowered reserve requirements and the expiration of pandemic-related relief measures.
Treasury and other government bonds grew by 0.3% quarter-on-quarter, with the government falling short of its borrowing plan due to investors' demand for high yields. Corporate bonds contracted by 2.4%.
Property firms issued the majority of outstanding bonds, comprising 31.9% of the total.
Total issuances increased by 9.6% quarter-on-quarter, with BSP issuances up 14.3% following the launch of a 56-day bill, and Treasury and other government bond offerings up by 2.45%.
The ADB predicts the central bank will maintain its tightening policy until inflation falls within the target.