PH 2nd fastest-rising bond market in EAsia
Credit to Author: ANNA LEAH E. GONZALES| Date: Wed, 19 Jun 2019 16:48:29 +0000
Business expansion in both government and corporate securities in the Philippines enabled the local bond market to become the second fastest-growing in emerging East Asia, the Asian Development Bank (ADB) said.
In its latest Asia Bond Monitor released on Wednesday, ADB said the country’s currency bond market grew by 17 percent to P6.5 billion ($125.4 million) in the first quarter of the year from P5.5 billion ($107 billion) in the same quarter of 2018.
The amount was also higher by 8 percent from the P6 billion ($116 million) in the fourth quarter of 2018. “The growth was supported by growth in both the government and corporate bond markets,” the report said.
The amount of outstanding government bonds amounted to P5.20 billion ($99 million) also up by 16 percent from P4.47 billion ($86 million) a year ago. ADB attributed the growth to the increase in treasury bills and treasury bonds.
The report said corporate bonds which reached P1.38 billion ($26 million) was also higher by 24 percent from the P1.11 billion ($21 million) in 2018.
ADB said that during the first quarter of the year, there were a total of $15 trillion in local currency bonds in Emerging Asia, up by 14 percent compared to the same period in 2018.
In a separate statement, ADB Chief Economist Yasuyuki Sawada said that while the region’s bond markets are holding firm, risks are still to the downside. “That said, we see potential in the development of housing bonds to finance growing demand for homes as countries urbanize and for green bonds to fund clean energy and other climate-friendly projects,” said Sawada.
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