NextGen Day

MANILA, Philippines — The demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) remains high, but rates have risen due to concerns about international developments.

According to data issued by the central bank on Wednesday, the seven-day facility’s average rate increased to 1.9525 percent, while the 14-day facility’s rate increased to 2.0651 percent.

During the auction on March 2, they were 1.7286 percent for the seven-day facility and 1.8978 percent for the 14-day tenor.

This week, the BSP reduced the offer volume for both tenors to PHP160 billion for the one-week TDF, down from PHP220 billion last week, and to PHP250 billion for the two-week facility, down from PHP280 billion.

The one-week tenor received a total of PHP161.403 billion in tenders, resulting in a bid coverage ratio of 1.0088.

The lengthier tenor received PHP255.751 billion in bids, increasing the total bid coverage to 1.0230.

Accepted yields for both tenors in this week’s TDF auction “moved upward but narrowed slightly to a range of 1.6620-2.3840 percent in the 7-day TDF and 1.7060-2.3840 percent in the 14-day TDF,” according to BSP Deputy Governor Francisco Dakila Jr. in a statement.

“Current market conditions amid ongoing global developments, as well as some lingering impacts from the recently ended issuance of the retail treasury bonds (RTBs),” Dakila said of the auction’s conclusion.

The government issues RTBs through the Bureau of the Treasury. Because the minimum investment is PHP5,000, these are debt papers for small investors.

During the two-week offer period from Feb. 15 to 28, 2022, the BTr raised PHP457.8 billion in five-year RTB.

Despite these factors, Dakila claims that “financial system liquidity” is “plenty.”

“In the future, the BSP’s monetary operations will be guided by its assessment of the most recent liquidity conditions and market developments,” he added.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---