Philippine bonds climbed on optimism the central bank will keep interest rates at a record low for an extended period as inflation remains within target.
Four-year securities rallied for a sixth day, pushing yields to the lowest level since the notes were first sold in January 2009, after Governor Amando Tetangco said the central bank has “policy space to support non-inflationary growth.” The monetary authority is sticking to its average inflation forecast for this year and 2011 even as Manila’s wage-setting council approved an increase in minimum pay, Deputy Governor Diwa Guinigundo said.
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