Philippine Bonds to Widen Lead Over Indonesia as Rate Cut Looms.

The prospect of an interest-rate cut in the Philippines is causing a rally in the nation's bonds, putting them ahead of Indonesia's as investors focus on monetary policy outlooks. The benchmark 10-year Philippine bond yield has decreased since May, while the Indonesian equivalent has remained high, widening the gap between the two. The yields are expected to continue diverging as the Bangko Sentral ng Pilipinas prepares for a rate cut, while concerns about the fiscal deficit and currency weigh on Indonesian bonds. The near-term outlook for peso bonds is becoming more favorable as inflation decreases. [Extracted from the article]