Gov't front-loaded local debts in Q1

Peso-denominated bonds issued by the Philippine public and private sectors climbed at the start of the year, as both the government and private corporations increasingly tapped the domestic commercial debt market for their financing requirements.

- BY BEN ARNOLD DE VERA

Data from the Manila-based Asian Development Bank's (ADB) latest Asia Bond Monitor report for June 2025 showed that the local currency (LCY) bond market grew 4.1 percent quarter-on-quarter to P13.5 trillion at end-March 2025, reversing the 0.6-percent decline in the fourth quarter of 2024.

"Growth was steered by a rebound in treasury and other government bonds, which rose 4.1 percent quarter-on-quarter due to increased government borrowing. Meanwhile, central bank securities posted the fastest rate of expansion among all bond types at 15.3 percent quarter-on-quarter, reversing the 11.7-percent quarter-on-quarter contraction in the previous quarter," noted the ADB report, published last Monday, June 16.

However, the ADB said the stock of corporate bonds shrank by 2.8 percent quarter-on-quarter during the same period as a high volume of securities matured.

The LCY bond market was also boosted by new issuances, which increased by 13.7 percent quarter-on-quarter to P2.7 trillion in the first quarter.