April 24 (Bloomberg) -- Philippine bonds and the peso fell as mounting concern that Europe will fail to implement budget cuts aimed at ending a sovereign-debt crisis weakened demand for emerging-market assets.
The MSCI Asia-Pacific Index of stocks dropped for a fourth day after Dutch Prime Minister Mark Rutte resigned in a bid to break a deadlock over additional budget cuts needed to satisfy European deficit limits. The Philippines’ Bureau of Internal Revenue missed its tax collection goal in March, the government said on its Twitter account yesterday.
“People are more defensive,” said Antonio Espedido, treasurer at China Banking Corp. in Manila. “It looks like the implementation of austerity measures in Europe will be rocky because of protests and that is worrisome.”
The peso slipped 0.1 percent to 42.695 per dollar in Manila, prices from Tullett Prebon Plc show. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 5.1 percent.
The yield on 5 percent government bonds due August 2018 climbed five basis points, or 0.05 percentage point, to 5 percent, according to Tradition Financial Services.
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