Philippine Bonds Rise as March Budget Deficit Widens More Than Expected

(Bloomberg) -- Philippine government bonds rose after the government reported the biggest monthly budget deficit since at least 1994 and the worst in President Gloria Arroyo's term in office. The peso weakened.

Arroyo is trying to boost revenue to end a decade of annual deficits this year, where the government is spending more than it can generate from the economy. Failure to meet the targeted shortfall this year will cause yields to rise, said Jonathan Ravelas, a market strategist at Banco de Oro in Manila. The yield on the three-year bonds gained to the highest in a month.


Read more at Bloomberg Bonds News