Asian bond spreads were range-bound as investors paused following warnings by Federal Reserve officials about inflation and seeping doubts about whether the worst of the credit crisis is over, reports Reuters.

Philippine sovereign bonds extended their recent falls after finance secretary Margarito Teves said the country might increase the overseas portion of planned borrowings this year to 36% from the current 25%.

That could mean the Philippines would borrow an additional $500 million this year, on top of the $500 million in global debt it sold in January when it reopened its existing 2032 bond issue.

The iTRAXX Asia ex-Japan high-yield index, a key measure of risk aversion, was little changed at 460/470 basis points, while the index of investment grade names was quoted at 96/98.

But May has brought a more subdued tone to trading, amid fears about the impact of surging oil prices on inflation and concerns resurfacing over the global credit crisis.