The auction of the central bank term deposit facility (TDF) attracted higher average rates for the two tenors particularly for the 14-day, while tenders are mixed on lower offered volume.

Based on Bangko Sentral ng Pilipinas (BSP) data, total bids reached P523.76 billion versus a P540 billion offer. This was lower than March 3’s P645.75 billion bids against a P600 billion offer.

The 7-day TDF was offered at P190 billion this week from P200 billion previously. It was undersubscribed with P145.42 billion bids. The average rate went up to 1.6742 percent from 1.6332 percent last week.

The 14-day tenor also has a lower offer of P350 billion from P400 billion last week. Tenders received amounted to P378.34 billion while the yield increased to 1.8544 percent from 1.7804 percent.

The TDF is one of the BSP’s main liquidity management tool. The 28-day TDF is still absent in favor of the 28-day BSP bills which are auctioned every Friday since September 18 last year.

Source: Manila Bulletin (