The peso exchange rate closed two-year high at P44.12 to the US dollar Thursday at the Philippine Dealing & Exchange Corp. (PDEx) from P44.25 the previous day. The weighted average rate appreciated to P44.123 from P44.398. Total volume amounted to $1.111 billion.

MARKET CONDITIONS TO DICTATE TIMING OF PESO BOND SALE

The Department of Finance said Thursday it has mandated Citigroup and Deutsche Bank as joint global coordinators for its benchmark-sized, peso-denominated global bond offering maturing in January 2021. "The issue will be launched in the near future subject to market conditions," a statement from the Department of Finance said. A source privy to debt issue said the peso global bond could be priced as early as Thursday. The Bangko Sentral ng Pilipinas has authorized the government to raise as much as $1 billion from the maiden peso-denominated global bond. The government plans to issue more peso-denominated debt to reduce the foreign currency risk of one of Asia's most aggressive sovereign borrowers in the international debt market. The finance department said that Citigroup, Deutsche Bank, Credit Suisse, Goldman Sachs, HSBC and J.P. Morgan will be joint bookrunners for the benchmark-sized bond. (Dow Jones)

R.P. BONDS SNAP WINNING STREAK

HONG KONG, Sept. 9 (Reuters) – Philippine bond yields broke a six-week fall on Thursday as investors took profits on a recent rally on speculation that an upcoming global peso bond offer would sap demand for local debt. Manila is putting the final touches on a global peso bond tender of up to $1 billion, and traders said investors may switch out of local currency bonds into the global peso bond if interest rate differentials were large enough. Four-year bond yields were up five basis points (bps) to 5 percent and moving further away from a record low of 4.92 percent hit earlier this week. ''The upcoming global peso bond tender might hit demand for the FXTNs (government bonds) and that is causing the selloff,'' said a Manila-based trader.

P.A.L. CABIN CREW UNION FILES STRIKE NOTICE

Philippine Airlines' cabin staff Thursday formally advised the government they would go on strike at the end of October, saying the move would ground all flights by the loss-making flag carrier. The 1,600-member cabin crew union said it had filed a strike notice with the labor ministry, which by law has 30 days to try to find a compromise between the airline and employees to prevent a shut-down. ''Once we go on strike, no flight will take off,'' said Bob Anduiza, president of the Flight Attendants Association of the Philippines. (AFP)