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Philippines: Term deposit rates mixed

MANILA, Philippines — Term deposits fetched mixed results yesterday as cash-rich banks swarmed the auction, according to the Bangko Sentral ng Pilipinas.

The seven-day term deposits fetched 1.8377 percent or 1.01 basis points higher than last week’s 1.8276 percent.

On the other hand, the yield of the 14-day tenor slipped by 0.19 basis points to 1.8460 percent from 1.8479 percent, while that of the 28-day term deposits declined by 1.09 basis points to 1.8409 percent from 1.8518 percent.

BSP Deputy Governor Francisco Dakila Jr. said the results of the term deposit facility auction continued to support the view that liquidity in the financial system remains ample.

Dakila said bids amounted to P527.98 billion versus the lowered volume of P350 billion as all tenors were oversubscribed.

Tenders for the seven-day term deposits amounted to P212.57 billion versus the P160 billion offering, while tenders for the 14-day tenor amounted to P265.68 billion, higher than the P170 billion offering.

Likewise, bids for the 28-day term deposits amounted to P49.73 billion or more than double the lowered volume of P20 billion.

“Looking ahead, the BSP’s calibration of its monetary operations will continue to be guided by its assessment of market developments and liquidity conditions,” Dakila said.

The Monetary Board took a prudent pause and left interest rates unchanged for the first time this year last Aug. 20 to allow previous aggressive monetary actions work its way through the economy.

Source: https://www.philstar.com/business/2020/09/17/2042924/term-deposit-rates-mixed