MANILA -- Term deposit facility (TDF) offering for the auction on September 4, 2019 has been reduced to PHP40 billion from PHP80 billion last week.
Data released by the Bangko Sentral ng Pilipinas (BSP) Monday showed that both the seven and 14-day facilities will be offered for PHP10 billion, while offering for the 28-day TDF is PHP20 billion.
During the auction last August 28, the seven-day facility was undersubscribed after tenders reached PHP19.228 billion, short of the PHP20-billion offer.
The 14-day TDF was offered for PHP20 billion and received bids amounting to PHP24.322 billion, while the 28-day facility was undersubscribed at PHP33.203 billion against the PHP40-billion offer.
BSP Deputy Governor Francisco Dakila Jr. said the below-offered bids last week “indicated lower liquidity in the financial system to be siphoned due to higher deposits of the national government with the BSP.”
“At the same time, the undersubscription may be attributed to banks funding requirements for scheduled loan releases, client withdrawals, as well as month-end requirements,” he said.
Dakila, however, pointed out that bids in last week’s TDF auction “was within the BSP's liquidity forecast for the week.” (PNA)
