MANILA -- The Bangko Sentral ng Pilipinas (BSP) will offer lower volume during the term deposit facility (TDF) auction on August 28.
In an advisory, the central bank said a total of PHP80 billion will be offered next week, lower than the PHP100 billion this week.
Specifically, the seven- and 14-day facilities will be offered for PHP20 billion each, while the 28-day offering is PHP40 billion.
During the auction on Thursday, a day late due to the holiday last Wednesday, the six-day facility was offered for PHP40 billion but was undersubscribed at PHP35.82 billion.
Banks also offered low bids for the 13-day facility after they submitted tenders amounting to PHP26.055 billion against the PHP30 billion offering.
On the other hand, there was strong demand for the 27-day TDF after bids reached PHP41.119 billion, higher than the PHP30 billion offer.
BSP Deputy Governor Francisco Dakila Jr. attributed this week’s auction results to “appetite for longer-tenored term deposits.”
“At the same time, the results of the auction indicated the banks' preference to hold on to their cash in view of the long weekend and month-end liquidity requirements,” he said.
Dakila, however, noted that the total tenders received across all TDF tenors at about PHP103 billion were in line with the BSP's liquidity forecast for the week. (PNA)
