MANILA -- The Bangko Sentral ng Pilipinas (BSP) lowered by PHP10 billion its term deposit facility (TDF) offering this week to PHP80 billion relative to the previous week’s offer.
Data released by the central bank showed the seven-day and 28-day facilities will be offered for PHP30 billion, while the 14-day facility will be offered for PHP20 billion.
In last week’s auction, the seven-day facility was offered for PHP20 billion and was fully awarded after tenders reached PHP32.563 billion.
The 14-day facility was also fully awarded at PHP30 billion even as the bids were only slightly higher than the offer at PHP30.24 billion.
On the other hand, the 28-day facility was undersubscribed at PHP37.686 billion against the PHP40-billion offer.
The overall decline in TDF offerings this week may be attributed to monetary officials’ liquidity forecast ahead of the All Saints’ Day and All Souls’ Day holidays.
In the past, monetary officials said TDF tenders were low ahead of the holidays because banks intend to keep their funds to be able to cater to their clients’ needs. (PNA)
