TDF rates end mix; bids total P165 B

Published December 18, 2019, 12:00 AM

by manilabulletin_admin

By Lee C. Chipongian

Bids for the central bank’s term deposit facility (TDF) on Wednesday reached P165.27 billion versus offer of P150 billion while yields continue to end mixed.

This week’s TDF volume is lower than December 11’s P180 billion.

The Bangko Sentral ng Pilipinas (BSP) on December 12 held its last policy meeting for 2019 with an expected decision to keep a “hold” stance. The reverse repurchase facility or overnight borrowing rate remained at four percent in the last two meetings after a 75 basis points (bps) cut since May.

The TDF mirrored the benchmark rate with both the 14-day and 28-day ending with steady rates.

The 14-day tenor, offered at P50 billion and less than last week’s P60 billion, received P41.52 billion tenders. The average rate was only slightly changed at 4.3288 percent from 4.3249 percent.

The 28-day tenor also has a reduced volume on Wednesday. It was offered only at P40 billion versus P60 billion previously. It received some P49.92 billion bids while the yield closed at 4.3436 percent from 4.3496 percent.

The shortest-dated TDF, the 7-day, still has the same offer of P60 billion. It was oversubscribed and attracted P73.83 billion versus December 11’s P66.83 billion. The average rate fell to 4.2724 percent from 4.3040 percent.