Rate Cuts Seen Lifting Philippine Bonds From Asia’s Lowest Ranks

Philippine bonds are poised to rebound from the bottom of Asia’s debt rankings, thanks to the central bank’s room to cut rates and their relative insulation from US Treasury moves.

Interest rates in the Philippines, after adjusting for inflation, are the highest in emerging Asia. That means Bangko Sentral Ng Pilipinas can slash rates further on top of its 125 basis points of cuts over the past year, a move that would favor local debt.