TDF bids remain high, rates decline

by Joann Villanueva/PNA

Bids for the Bangko Sentral ng Pilipinas’ (BSP) seven-day and 14-day Term Deposit Facility (TDF) declined week-on-week Wednesday but a ranking monetary official noted that bids remained higher than the offer.

Data released by the central bank showed that tenders for the seven-day facility amounted to PHP34.296 billion, higher than the PHP20 billion offer but lower than the PHP42.285 billion submitted by banks on March 6. The auction committee awarded it in full.

This resulted in the decline of the bid coverage ratio to 1.7148 from 2.1143 last week.

The rate of the tenor went down to 5.0214 percent from 5.0342 percent during the auction last week.

Tenders for the 14-day facility amounted to a total of PHP32.053 billion, higher than the PHP20-billion offer but a drop from last week’s PHP33.516 billion. The auction committee also made a full award for this tenor.

Bid coverage ratio, thus, slipped to 1.6027 from 1.6758 last week.

Its rate averaged at 5.0975 percent from last week’s 5.1452 percent.

There was no offer for the 28-day TDF this week.

BSP Deputy Governor Diwa Guinigundo said that amid the lower bids in this week’s auction, liquidity remained high.

“Still shows system is liquid, banks have enough surplus to place with BSP,” he said in a reply to a question from the Philippine News Agency (PNA).

For the auction on March 20, offer for the seven-day and 14-day TDF will remain at PHP20 billion while it is PHP10 billion for the 28-day facility.

Popular

Zaldy Co in custody of Czech authorities due to immigration concerns, Palace clarifies

By Brian Campued Malacañang on Friday stressed that there was no contradiction between the latest pronouncement of the Department of Justice (DOJ) and the announcement...

Palace respects ICC’s confirmation of charges vs. FPRRD

By Brian Campued Malacañang on Thursday said it respects the International Criminal Court’s (ICC) latest ruling on the confirmation of charges against former President Rodrigo...

Political issues won’t affect PH’s hosting of ASEAN 2026 —Palace

By Brian Campued The Philippines’ hosting of the 48th Association of Southeast Asian Nations (ASEAN) Summit in Cebu in May will push through amid current...

Palace won’t reject VP Sara’s travel request —Castro

By Brian Campued Malacañang will not reject any request for travel authority to be submitted by Vice President Sara Duterte, Palace Press Officer Claire Castro...