Worst-Performing Philippine Bonds Face Peso, Inflation Risks

Markets Contact us:Provide news feedback or report an error Confidential tip?Send a tip to our reporters Site feedback:Take our Survey By Marcus Wong October 8, 2026 at 12:00 AM UTC Takeaways by Bloomberg AI Philippine bonds, the worst-performing in emerging markets since the Iran war began, are set for further losses as faster inflation, a sliding peso and softer auction demand weigh on sentiment, strategists say. Inflation in the archipelago accelerated to 7.2% last month from a year earlier, boosting the odds of another interest-rate increase by the central bank and weighing on the nation’s sovereign debt. The peso has tumbled 6.3% this year, while its correlation to bond yields has also climbed to a record.