MANILA – The change in maturity preference resulted in the mixed results in the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rates Wednesday.
The rate of the seven-day TDF declined further to 1.6154 percent but the rate of the 14-day facility rose to 1.6264 percent in this week’s auction.
These were at 1.6157 percent for the seven-day and 1.6256 percent for the 14-day during the TDF auction last Feb. 3.
The BSP kept the total offering at PHP630 billion this week.
However, the shorter-dated tenor was offered for PHP210 billion this week from PHP240 billion last week, and the 14-day for PHP420 billion from last week’s PHP390 billion.
Tenders for the one-week TDF amounted to PHP228.491 billion. The auction committee made a full award.
Bids for the longer-tenor facility are lower than the offer volume at PHP406.488 billion but the auction committee fully accepted it.
Despite the undersubscription in the 14-day TDF, BSP Deputy Governor Francisco Dakila Jr. said “results of today’s auction continue to show ample liquidity in the financial system.”
“The marginal undersubscriptions observed in the recent auctions merely reflect some shifts in the maturity preferences of market participants,” he said in a statement.
Dakila added that amid this development, “the BSP’s monetary operations will continue to closely assess liquidity conditions and market developments going forward." (PNA)
