The central bank did not change the volume of its term deposit facility (TDF) this week, still at P490 billion, while the yields for the two TDF tenors were higher on strong demand ahead of All Soul’s Day on November 2.
The 28-day TDF is still absent in favor of the 28-day BSP bills which are auctioned every Friday since September 18.
“There was no offering for the 28-day TDF (but) the TDF auction was oversubscribed with the 7-day and 14-day tenors receiving 1.03x and 1.21x their respective volume offerings,” said Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila Jr.
Wednesday’s TDF auction received P552.97 billion, up from P518.88 billion last week.
“The BSP maintained the TDF offer volume at P490 billion with unchanged allocations for the 7-day and 14-day tenors at P220 billion and P270 billion, respectively,” said Dakila. He added that the TDF auction show financial liquidity remains ample leading to All Soul’s Day on Monday and All Saints Day on Sunday, for a long weekend.
Dakila noted that the average interest rates are still on the rise, same as last week.
The 7-day TDF, offered at P220 billion, attracted P227.44 billion from P225.95 billion last week. Its average rate rose to 1.9373 percent from October 21’s 1.8113 percent.
The 14-day tenor, in the meantime, still offered at P270 billion, received P325.52 billion this week which was more than P292.92 billion previously. Its average rate went up to 2.0337 percent from 1.9051 percent.
Dakila said the range of accepted yields were wider from the previous week for the 7-day
TDF at 1.830-2.050 percent but were narrower for the 14-day TDF at 1.850-2.198 percent. (Lee C. Chipongian)