Philippine TDF yields drop amid high demand

Yields on the Bangko Sentral ng Pilipinas’ (BSP) seven-day term deposit facility continued to decline due to high demand, with banks parking excess funds after additional liquidity was infused into the system.

Total tenders for the TDF amounted to PHP119.288 billion, surpassing the PHP30 billion on offer and more than doubling last week’s bids of PHP78.496 billion.

The average rate for one-week papers settled at 2.4369%, a drop of 52.09 basis points from the previous week's 2.9578%.

BSP Deputy Governor Francisco Dakila attributed the decline to recent measures by the central bank to boost market liquidity and indicated an increase in market appetite for BSP instruments and government securities.