TDF offer undersubscribed

acceptable bids. The higher the ratio, the more the auction is considered oversubscribed.

As forecast

The latest auction results are consistent with the view of Bank of the Philippine Islands (BPI) Vice President and lead economist Emilio Neri Jr. that trust entities’ restricted access to BSP deposit facilities could push the TDF yield rates higher.

“Trust companies will have to deploy their funds elsewhere, including the local bond and equity markets,” he said earlier.

Liquidity ‘noninflationary’

Despite this, the BSP governor said monetary authorities see the level of liquidity in the system as still

“We, nevertheless, remain watchful of external developments that may affect domestic liquidity through shifts in capital flow direction and magnitude,” he said.

The latest auction results are consistent with the view of Bank of the Philippine Islands (BPI) Vice President and lead economist Emilio Neri Jr. that trust entities’ restricted access to BSP deposit facilities could push the TDF yield rates higher.

“Trust companies will have to deploy their funds elsewhere, including the local bond and equity markets,” he said earlier.