Philippine bonds rise on remittances; Peso near four-week high

Philippine bonds climbed for a fifth day and the peso traded near a four-week high as increased remittances from overseas workers brighten the outlook for the economy and bolster confidence in the nation’s assets. The yield on the benchmark six-year security slipped to a record low after the central bank said yesterday remittances rose 5.4 per cent in April.

The nation’s foreign-exchange reserves climbed to a record $47.7 billion in May, the central bank reported last week. Second-quarter economic growth may match the 7.3 per cent expansion recorded in the first three months, the government said this week before raising its full- year growth target. Money sent back to the Philippines increased to $1.52bn in April, after growing 5.6 per cent in March. Inflation slowed to 4.3 per cent in April from 4.4 per cent the previous month, the government reported earlier this month.