MANILA: Philippine bond gains may be crimped by a surprising slump in remittances, but a raft of underlying positives should help the securities keep their place as the region’s best performers this year.
Money sent home by overseas workers tumbled 4.1% in August, the monetary authority said earlier this month, fueling concern this will reduce bank deposits and trim demand for the nation’s sovereign debt.
At least initially, the slide appeared to add another negative for Philippine Treasuries, which have struggled to maintain their momentum following a stellar rally in the second quarter.