MANILA, Philippines — The term deposit auction facility (TDF) was undersubscribed yesterday due to the high demand for cash during the Christmas holidays, but yields continued to hit record levels. The P70-billion auction yesterday was undersubscribed, with tenders reaching only P58.48 billion as banks stay away from the facility due to the higher demand for cash from clients due to the Christmas season. Likewise, bids for the 28-day tenor only amounted to P6.63 billion compared to the auction size of P10 billion. The seven-day tenor fetched a record 5.1462 percent yesterday or 3.27 basis points higher than last week’s 5.1135 percent, while the yield of the 14-day term deposits rose 5.39 basis points to a new all-time high of 5.2188 percent from 5.1649 percent. The 28-day term deposit rate inched up 1.4 basis points to a record 5.2092 percent from 5.1952 percent last week.

Source: Philippine Star December 19, 2018 16:03 UTC