Foreign funds step up purchase of Phil bonds

Foreign investors continue to ramp up purchases of Philippine government bonds, reaching more than P700 billion so far this year, according to the Bureau of the Treasury.

- By MARCO LUIS BEECH

Ahead of the expected inclusion of the Philippines in J.P. Morgan Chase & Co.'s emerging market government bond index, foreign participation in the country stood at six percent.

National Treasurer Sharon Almanza said that they aim to increase foreign participation beyond seven percent while managing the effects of volatility on rates and the country’s currency, noting that 10 percent remains an ideal target.

“Of course having a higher figure than what we currently have is better. However, we also need to manage volatility, as this month we've observed several selloffs, particularly from fast money and hedge funds,” Almanza told reporters.