MANILA – The interest rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose Wednesday despite oversubscription, which a central bank executive pointed to investors’ search for gains.
Data released by the BSP showed that the average rate of the seven-day facility inched up to 1.6310 percent and the 14-day’s to 1.6443 percent.
These were at 1.6154 percent and 1.6264 percent for the one-week and two-week facilities during the auction last Feb. 10.
The BSP lowered the offering this week to a total of PHP600 billion from PHP630 billion last week “in line with the liquidity conditions amid the Bureau of the Treasury’s (BTr) retail treasury bond (RTB) offering.”
The BTr started to offer the three-year RTB last Feb. 9 and this will last until March 4, 2021.
Because of this, BSP offered the seven-day TDF for PHP200 billion this week from PHP210 billion last week.
Tenders for the shorter-dated facility amounted to PHP258.927 billion while it amounted to PHP480.455 billion for the 14-day facility.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “results of today’s auction reflect market participants’ search for yields amid ample financial system liquidity.”
“Moving forward, the BSP’s monetary operations will continue to be guided by its assessment of liquidity conditions and market developments,” he added. (PNA)
