The Asian Development Bank linked the 52-basis point decline in bond yields in the Philippines to the decision of the Monetary Board to cut policy rates.
“Between 1 June and 30 August, government bond yields in the Philippines fell by an average of 52 basis points for tenors of 2 years and above. This was driven by the Bangko Sentral ng Pilipinas’ monetary policy easing in August, as inflation remains consistent within the government’s target path,” the ADB, however, said.
The ADB said other East Asian countries also suffered the same fate due to either or both the reduction in key policy rates of their respective central banks and expectations of policy rate cuts by the Fed. Meanwhile, the ADB said sustainable bonds in the Association of Southeast Asian Nations , the PRC, Japan, and the ROK—collectively known as Asean+3—reached $868.1 billion at the end of June.