TDF offering raised to P110B

The Bangko Sentral ng Pilipinas has further increased to P110 billion the volume of its term deposit facility (TDF) offering for the first scheduled auction in the fourth quarter.

The BSP announced that it would offer to banks and trust institutions P100 billion in 28-day term deposits (from P90 billion at present) and P10 billion in seven-day at the Oct. 5 auction.

“The increase in the 28-day is part of the auction refinement program. The adjustment has been for the longer tenor so far because that is where we find greater market appetite for now. This means we can make similar upward adjustments to the shorter tenor should conditions warrant,” BSP Governor Amando M. Tetangco Jr. said in a text message.

Yesterday’s auction was again oversubscribed with P34.9 billion offered for the P10-billion seven-day facility at a 2.5-percent yield on top of P148.7 billion for the P80-billion 28-day term deposits with an accepted yield of 2.5-2.563 percent.

Meanwhile, Tetangco said today’s (Thursday) policy meeting of the Monetary Board would take into consideration the latest actions of the Bank of Japan (BOJ) as well as the US Federal Reserve.