Both tenors of the term deposit facility (TDF) auctioned off by the Bangko Sentral ng Pilipinas Wednesday were undersubscribed ahead of the suspension of government work due to President Rodrigo Duterte’s declaration of a National Day of Protest.
For the P40 billion in seven-day TDF, banks tendered only P36.89 billion, which the BSP accepted at a yield of 3.23-3.4 percent.
As for the P110 billion in 28-day TDF, bids reached P67.155 billion, which the BSP awarded at a range of 3.45-3.5 percent.
“Suspension of work appears to be the reason for the banks to keep funds with them,” BSP Deputy Governor Diwa C. Guinigundo said in a text message to reporters.
BUSINESS
BUSINESS
BUSINESS
Guinigundo added that banks also continue to lend out as well as invest, hence the shortfall in tenders for the TDF.
Malacañang earlier announced work suspension in government offices on Sept. 21, Thursday.
