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TDF auction attracts P418.77-B bids

By Lee C. Chipongian

Yields of the central bank’s term deposit facility (TDF) continue to drop this week ahead of today’s (Thursday) policy rate meeting, while bids reached P418.77 billion versus offer of P170 billion.

Based on Bangko Sentral ng Pilipinas (BSP) data, the 7-day TDF, still offered at P120 billion, received P278.47 billion tenders, more than the previous week’s P268.44 billion.

The 7-day TDF average rate fell to 2.2504 percent from June 17’s 2.2505 percent.

The other tenor, the 14-day, had a higher volume this week of P50 billion compared to the previous P30 billion. Banks bid P140.30 billion compared to the previous Wednesday’s P91.58 billion.

The 14-day TDF’s yield was also lower this week at 2.2508 percent from 2.2512 percent.

The BSP has yet to bring back the 28-day TDF which has been suspended since March 18. The 14-day was recently revived and now on its third week of auction.

The BSP auctioned only one tenor for almost two months to ensure that peso liquidity continue to be adequate and “support the smooth flow of funding to businesses and households while on COVID-19 lockdown.

When to bring back the 28-day tenor will depend on the BSP’s liquidity forecasts and the current market conditions.

Source: Manila Bulletin (

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