Mixed signals from rich countries to weaken peso, bonds

The difference in the monetary policies of a fast expanding US economy and the weaker Japanese and European economies may make yields in the local bond market and the peso less attractive to foreign investors.

But central bank governor Amando Tetangco Jr. feels that given the US Federal Reserve’s “patience,” in keeping interest rates low, some more “juice” can be squeezed from the interest differential in favor of the emerging market bonds before “shifting” more aggressively to the dollar.