Tuesday, January 19, 2021

PH bond market worth P8.13T in Q3 – ADB


Latest Stories

Pandemic reveals hidden poverty in wealthy Japan

TOKYO: Yuichiro welled up as he collected a food parcel at a Tokyo outreach event offering help to the...

Biden won’t end pandemic travel restrictions

PHOENIX: President-elect Joe Biden’s incoming White House press secretary says his administration does not intend to lift coronavirus travel...

Biden to propose 8-year citizenship path for immigrants

WASHINGTON, D.C.: President-elect Joe Biden plans to unveil a sweeping immigration bill on Day One of his administration, hoping...

House okays media workers’ welfare bill

The House of Representatives on Monday approved the proposed Media Workers' Welfare Act on final reading. House Bill 8140...

BSP issues P5K Lapu-Lapu banknote

The Bangko Sentral ng Pilipinas (BSP) and the National Quincentennial Committee (NQC) launched on Monday the P5,000 Lapu-Lapu Commemorative...

The Philippine local currency bond market grew to P8.13 trillion ($168 billion) in the third quarter on the back of the increase in issuances of Treasury bonds, the Asian Development Bank (ADB) reported on Wednesday.

In its latest Asia Bond Monitor report, the Manila-based multilateral lender said the amount was a 21.5-percent increase from P6.6 trillion ($131 billion) in the same period last year and an 8.8-percent jump from P7.47 trillion ($168 billion) in the second quarter.

Government bonds made up 79.9 percent of the market while corporate bonds made up 21.1 percent.

Outstanding government bonds in the period rose 23.8 percent year-on-year to P6.5 trillion ($134 billion) from P5.25 trillion ($101 billion) a year ago.

Quarter-on-quarter, these bonds grew by 10.1 percent from P5.94 trillion ($119 billion).

“The increase in market size was supported by Treasury bills and, in particular, Treasury bonds. The Bureau of the Treasury (BTr) issued another tranche of retail Treasury bonds (RTBs) to raise more funds for the government’s [coronavirus] pandemic responses,” the ADB said.

“At the same time, the BSP (Bangko Sentral ng Pilipinas) started issuing its own securities as additional instruments for its monetary policy implementation and liquidity management operations, adding to the government’s debt,” it added.

According to the report, state bond issuances totaled P1.10 trillion.

Outstanding corporate bonds hit P1.63 trillion, up 3.8 percent quarter-on-quarter and 12.9 percent year-on-year on the back of more bond issuances during the quarter.

“The banking sector remained the largest segment of the corporate bond market in Q3 (third quarter) 2020. The sector’s share increased to 41.7 percent at the end of September from 37.9 percent at the end of September 2019 as banks upped their issuance volume over the past year,” the ADB said.

Properties and utilities companies hold the second and third spots, respectively, it added.



Today's Front Page