Connect with us

Hi, what are you looking for?

Economy

Yields on term deposits mixed after PHL global bond offering

YIELDS ON THE central bank’s term deposits ended mixed on Wednesday, with more investors opting for the longer tenor following the country’s global bond sale.

Total bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) amounted to P652.901 billion on Wednesday, above the P530 billion on offer as well as the P645.342 billion logged in the previous week’s auction.

Broken down, demand for the one-week papers stood at P208.413 billion, higher than the P140 billion auctioned off by the BSP but failing to beat the P220.938 billion in tenders seen last week.

Banks asked for yields ranging from 1.7% to 1.7345%, a narrower range compared with the 1.7% to 1.75% seen a week ago. This caused the average rate of the seven-day term deposits to drop by 1.15 basis points (bps) to 1.7261% from 1.7376% previously.

Meanwhile, tenders for the 14-day papers amounted to P444.488 billion, surpassing the P390-billion offering as well as the P424.404 billion in demand seen a week ago.

Accepted rates for the tenor ranged from 1.75% to 1.83%, a slightly slimmer margin versus the 1.75% to 1.8499% band seen in the previous week’s auction. With this, the two-week paper’s average rate inched up by 0.29 bp to 1.8114% from the 1.8085% quoted on June 23.

The central bank did not offer the 28-day term deposits for the 36th straight week to give way to its weekly offerings of bills with the same tenor.

The term deposits and the BSP’s short-term securities are used by the central bank to gather excess liquidity in the financial system and to better guide market rates.

“The TDF auction results continue to show market participants’ search for yield in the longer tenor amid ample liquidity in the financial system. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity condition and market developments,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

BSP Governor Benjamin E. Diokno last month said the central bank’s policy measures have infused P2.2 trillion in fresh liquidity into the financial system, which is equivalent to 12.1% of gross domestic product.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said TDF yields ended mixed following the government’s global bond sale earlier this week.

The government on Monday raised $3 billion (P146 billion) from the sale of US dollar-denominated global bonds in a dual-tranche offering, which will be used to fund the national budget.

National Treasurer Rosalia V. de Leon said the 25-year tranche raised $2.25 billion, while the 10.5-year tranche generated $750 million.

The 10.5-year bonds were priced at 60 bps over the benchmark US Treasury yield, carrying a 1.95% coupon, while the 25-year debt papers fetched a coupon of 3.2%, the Bureau of the Treasury said. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
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!

Latest

Economy

People walk inside the Marikina Public Market, July 28. — PHILIPPINE STAR/ MICHAEL VARCAS By Kyle Aristophere T. Atienza and Jenina P. Ibañez, Reporters...

Economy

By Kyle Aristophere T. Atienza and Beatrice M. Laforga, Reporters THE LAST TWO packages under the comprehensive tax reform program, as well as a...

Economy

THE BUREAU of the Treasury (BTr) has set a P200-billion borrowing program for August as it expects sustained demand for government securities. The BTr’s...

Economy

By Beatrice M. Laforga, Reporter THE Bureau of Internal Revenue (BIR) suspended a regulation that would have increased the corporate income tax for nonprofit...

Economy

THE World Bank (WB) and the Philippine government recently signed an agreement for the $280-million (P14-billion) additional financing for a rural development program that...

Economy

CEBU Landmasters, Inc. (CLI) is venturing into resort development as the listed Visayas-Mindanao property company disclosed on Wednesday a P2.5-billion project that will beef...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, 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 © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



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!