It’s going to be a great year for bonds
In our latest issue of the Radar, our report on the rates outlook, we examine the trends that will influence the bond market this year.
![equities-ss-3](https://wealthinsights.metrobank.com.ph/app/uploads/2022/07/equities-ss-3.jpg)
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For those looking to create a more strategically resilient portfolio, bonds should play a big role this year.
Why?
Several reasons emerged when we did the research for our Radar, our monthly report on the rates outlook:
- No rate cuts are expected in 2023. To hit inflation targets of 2-4% for the Philippines and 4% for the US, rates are expected to reach 6.00% for the Philippines and 5.00-5.25% for the US.
- We believe the Philippine government will front-load its borrowings to support peso bond yields in the first half of 2023, with a lower bond supply in the second half to lower the fiscal deficit starting in 2024.
- We foresee the exchange rate reaching PHP 55.10 to the dollar by year-end, after factoring in the possibility of a US recession, a future monetary easing cycle, and the country’s