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All TDF rates up, volume raised to P380 B

The yields of the three-tenor term deposit facility (TDF) increased during its auction Wednesday as the Bangko Sentral ng Pilipinas (BSP) adjusted the offer size by just P20 billion to P380 billion.

“The sustained strong market demand for the TDF ahead of the settlement date of the Bureau of the Treasury’s five-year Retail Treasury Bonds as well as the return to tighter quarantine measures in the NCR indicates that liquidity in the financial system remains ample,” according to BSP Deputy Governor Francisco G. Dakila Jr.

Dakila said the central bank’s open market monetary operations “will remain guided by its assessment of market developments and liquidity conditions.”

This week’s TDF had tenders amounting to P526.49 billion versus the previous week’s P549.35 billion.

All tenors were oversubscribed. The 7-day TDF, still offered at P140 billion, had tenders of P196.23 billion. This was lower compared to July 29’s P214.78 billion. The average rate increased to 1.7542 percent from 1.7535 percent.

The 14-day tenor had a higher offer P180 billion from P140 billion last week. It attracted P247.36 billion while yields rose to 1.7566 percent from 1.7543 percent.

The 28-day, in the meantime, had a lower offer of P60 billion from P80 billion last July 29. Tenders totaled P82.89 billion. It had the highest increase in the averate rate, it went up to 1.7655 percent from the previous Wednesday’s 1.7594 percent.

The oversubscriptions were as follows: the 7-day received tenders that are 1.40x more than offer;  the 14-day at 1.37x; and the 28-day at 1.38x.

Dakila said the average interest rates “increased slightly” for all tenors while the “range of accepted yields remained narrow”. These are at: 1.750-1.756 percent for the 7-day TDF; 1.750-1.770 percent for the 14-day TDF; and 1.750- 1.799 percent for the 28-day.


Source: Manila Bulletin (https://mb.com.ph/2020/08/05/all-tdf-rates-up-volume-raised-to-p380-b/?utm_source=rss&utm_medium=rss&utm_campaign=all-tdf-rates-up-volume-raised-to-p380-b)

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