Public spending rose in the first ten months of the year on increased government disbursements.
Public infrastructure grew by 26% to Php208 billion while maintenance and other operating expenditures (MOOE) were higher by a fifth to Php230.5 billion. Increases in infrastructure spending were driven mainly by the settlement of accounts payable for public infrastructure and irrigation projects under the Public Works and Agriculture departments, respectively.
Meanwhile, the increase in MOOE is attributed to releases for the government’s relief and rehabilitation program in areas affected by calamities, as well as for addressing the humanitarian needs of displaced persons/families from Sabah.
Prices of local government securities were slightly higher as market players remained cautious before the FOMC meeting this coming December 17-18. Yields fell by an average of 0.36 basis points led by the long-end of the curve, which lost 5.4 basis points.
Meanwhile, the short-end and belly of the curve rose by 0.6 and 1.9 basis points, respectively.
The Philippine peso ended the day unchanged against the greenback as investors remained on the sidelines amid the uncertainty ahead of the FOMC meeting this week. The currency pair ended the day 44.150.