TDF posts mixed rates movement

MANILA — Banks submitted lower tenders for the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) Wednesday resulting in mixed movements of the facility’s weighted average accepted yields.

Data released by the central bank Wednesday showed that bids for the seven-day facility reached PHP36.890 billion, lower than the PHP40,000 offering and the PHP37.829 billion submitted in last week’s auction. The auction committee accepted all the bids.

Range of the accepted yield is wider this week at 3.2300 to 3.4000 from last week’s 3.2350 to 3.4000 percent.

Weighted average accepted yield improved to 3.3765 percent from 3.3484 percent during the auction last September 12.

However, bid coverage ratio decreased to 0.9223 from last week’s 0.9457.

Bids for the 28-day facility also went down after it amounted to PHP67.155 billion from last week’s PHP101.442 billion. Like the shorter tenor, the auction committee also accepted all the bids for this TDF.

Range of accepted yield remained between 3.4500 and 3.5000 percent but weighted average accepted yield improved to 3.4960 percent from last week’s 3.4950 percent.

Bid coverage ratio also went down after finishing at 0.6105 from 0.9222 last week.

BSP Deputy Governor Diwa Guinigundo attributed the lower bids to work suspension in government agencies and public schools on September 21.

“Suspension of work appears to be the reason for the banks to keep funds with them. Of course they continue to lend out, invest, etc.” he said.

Malacañang  has suspended work in government agencies and classes in all public schools nationwide on September 21, which was declared National Day of Protest.

Meanwhile, the BSP will continue to offer the seven-day TDF for PHP40 billion and the 28-day TDF for PHP110 billion on the auction scheduled on September 27, 2017. (PNA)

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