HALISTER1: INSIDE PHILIPPINES: Peso Rising Ahead of Central Bank Decision

INSIDE PHILIPPINES: Peso Rising Ahead of Central Bank Decision

(Bloomberg) -- Peso gains ahead of BSP rate decision amid broad-based dollar weakness after Fed held rates at yesterday’s policy meeting and indicated slower rate of increase next year.
  • Philippines central bank seen holding overnight borrowing rate at 3.0% by all 16 economists in Bloomberg survey; data due 4pm local time
    • Rate was lowered to 3.0% on May 16
  • USD/PHP may breach year-to-date high in short-term as investors dumping local equities outweigh an expected decision by central bank to hold rates, Bloomberg strategist David Finnerty writes
    • Pair falling for first time in six days; down 0.2% to 47.770, according to bankers’ association data
  • Philippines’ strong macroeconomic fundamentals should hold sway over short-lived negative market view, BSP deputy governor Guinigundo says
  • Global funds were net sellers of $7.3m of local equities yesterday, 20th straight day of outflows: exchange data
  • Yield on 3.625% govt bonds due Sept. 2025 falls to 3.5800% from 3.6150% yday, according to Tradition pricing
  • 5-yr credit protection costs for Philippines fall 1.4 bps to 105.3 bps, according to CMA New York data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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