Philippine Bonds Gain on Odds Central Bank Will Cut Deposit Rate
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Philippine three-year bonds gained, pushing the yield to the lowest level in more than a decade, on speculation investors are switching to fixed-income securities on odds for a cut in interest rates on central bank deposits.
Bangko Sentral ng Pilipinas lowered the rate on $46 billion of special-deposit accounts to 3 percent from more than 3.5 percent on Jan. 24 to help curb capital inflows, which have made the peso the best performing emerging-market currency in the past 12 months. The BSP will keep its benchmark overnight borrowing rate at a record low of 3.5 percent tomorrow, according to all 16 economists in a Bloomberg News survey.