Connect with us

Hi, what are you looking for?


TDF yields inch higher ahead of BSP meeting


YIELDS on the term deposits auctioned off by the Bangko Sentral ng Pilipinas (BSP) climbed on Wednesday, ahead of its policy meeting today (Dec. 15).

Demand for papers under the BSP’s term deposit facility (TDF) totaled P341.947 billion on Wednesday, lower than the P360 billion on the auction block. This is also below the P392.591 billion in bids logged last week for the P400 billion up for grabs.

Broken down, the seven-day deposits attracted tenders amounting to P182.994 billion, lower than the P200-billion offering as well as the P226.057 billion in bids recorded the prior week for a P220-billion offer.

Rates for the one-week papers ranged from 5.85% to 6.385%, marginally wider than the 5.7% to 6.125% range logged in the previous week. This brought the average rate for the tenor to 6.1395%, inching up by 20.49 basis points (bps) from the 5.9346% seen on Dec. 7.

For the 14-day deposits, tenders hit P158.953 billion, going below the P160-billion offering and the P166.534 billion in bids last week for the P180 billion up for grabs.

Accepted yields were seen from 5.875% to 6.55%, a higher band compared with the 5.75% to 6.35% logged the previous week. This brought the average rate of the two-week deposits to 6.2471%, up by 19.21 bps from the 6.055% logged a week ago.

The central bank has not auctioned off 28-day term deposits for more than a year to give way to its weekly offering of securities with the same tenor.

The term deposits and the 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields went higher again on Wednesday amid rate hike expectations from the BSP and the US Federal Reserve this week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Philippine central bank is widely expected to raise benchmark interest rates by 50 bps today, as the US Federal Reserve is also likely to tighten policy overnight.

A BusinessWorld poll last week showed 14 out of 15 analysts expect the Monetary Board (MB) to continue hiking borrowing costs at its Dec. 15 meeting.

For 13 analysts, the central bank may deliver a 50-bp rate increase, while one economist sees a 25-bp hike from the BSP to tame inflation.

Headline inflation picked up to 8% in November from 7.7% in October and 3.7% in November 2021. For the 11-month period, inflation averaged 5.6%, still lower than the BSP’s 5.8% full-year forecast but well above its 2-4% target.

The BSP has hiked policy rates by 300 bps since May to keep rising prices in check, with the key rate now at 5%.

Meanwhile, the US Federal Reserve has raised borrowing costs by 375 bps since March to a range between 3.75% and 4%. It is widely expected to deliver a smaller rate hike of just 50 bps on Dec. 13-14 following four straight 75-bp increases.

US inflation stood at 7.1% in November, easing from 7.7% in October but still above the central bank’s target. — Keisha B. Ta-asan

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!


Editor’s Pick

<?xml encoding=”utf-8″ ??> The exodus of workers from the jobs market over the pandemic has weakened prospects for Britain’s economic growth, the governor of...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Will Polston, talks to Business Matters about how helping ambitious owners to maximise their potential has resulted in him becoming a finalist...


Elon Musk talks about his company’s Starlink project at the Mobile World Congress, Barcelona, Spain, June 30, 2021. — BRISA PALOMAR / PACIFIC PRESS/SIPA...


PHILSTAR FILE PHOTO The National Economic and Development Authority (NEDA) has approved seven “high-impact” projects, ranging from agriculture to transportation, the agency’s top official...


Television (TV) advertising is shifting toward addressable TV, a service that allows advertisers to show different ads to different audiences watching the same program,...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Wayne Janse Van Rensburg, Chief Executive of education company Learndirect talks to Business Matters about the inspiration behind their business, which...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.