Philippine 5-Year Bonds Gain on Inflation Report; Peso Rebounds

Philippine bonds rose as a government report showed consumer prices increased less than economists forecast, allowing policy makers to keep interest rates low to support growth.

Annual inflation was 4.8 percent in September, compared with 4.7 percent in August, the statistics office said today. Economists surveyed by Bloomberg News predicted the rate at 4.9 percent. Price pressures fanned by storms that lashed the Southeast Asian country last week may not persist, the central bank said today. The peso gained the most in a week after President Benigno Aquino said the nation’s economic fundamentals are “still solid.”