Central bank TDF yields drop on rate cut hopes

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits fell on Wednesday as investors sought to lock in returns amid market expectations that the Monetary Board could ease borrowing costs at its Dec. 11 meeting.

- By Katherine K. Chan

Total tenders for the seven-day term deposit facility (TDF) reached P162.089 billion, more than double the P80 billion offered and exceeding last week’s P158.208 billion in bids.

The BSP accepted the full offering. Banks bid for rates from 4.6% to 4.7515%, narrower than 4.6%-4.765% last week, pushing the average down 1.24 basis points (bps) to 4.7435%.