No 28-day offer; TDF auction still oversubscribed

The Bangko Sentral ng Pilipinas (BSP) dropped the 28-day tenor this week and shifted the volume to the two remaining term deposit facility (TDF). During Wednesday’s TDF auction, the BSP offered ₱470 billion, down from ₱480 billion last week. Total bids reached ₱574.19 billion. The 7-day TDF has more volume at ₱220 billion versus October 7’s ₱200 billion. It received ₱254.48 billion tenders, more than last week’s ₱233.94 billion. The average rate rose to 1.8466 percent from 1.8431 percent last week. The 14-day tenor was offered at ₱250 billion, also higher than last week’s ₱220 billion. The TDF attracted ₱319.70-billion bids compared to ₱336.33 billion the previous Wednesday. The yield was down to 1.8426 percent from 1.8492 percent. BSP Deputy Governor Francisco G. Dakila Jr. said the auction results continue to “reflect sustained high level of liquidity in the financial system” but did not give any other explanation for why the 28-day TDF is not offered this week, other than to comment that “there was no offering for the 28day TDF.” (Lee C. Chipongian)