Philippine Bond Relief Rally Is Meeting Institutional Skepticism

Philippine Bond Relief Rally Is Meeting Institutional Skepticism Philippine bonds are staging emerging Asia’s biggest rebound following an interim US-Iran deal, but market watchers warn that inflation risks and a hawkish central bank may cap the bounce. Both Western Asset Management and William Blair Investment Management expect oil prices to stay elevated and the El Niño effect to spur supply shocks, prompting the Bangko Sentral ng Pilipinas to remain hawkish. This creates a fundamentally bearish backdrop for the nation’s peso fixed-income market, signaling to investors that the recent surge in bond prices may not be sustainable.