MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose further Wednesday, still on investors’ demand for yields amid the elevated inflation rate.
Data released by the central bank showed that the average rate of the seven-day facility increased to 1.8432 percent, and the 14-day facility to 1.8898 percent.
These were at 1.8049 percent for the one-week TDF, and 1.8839 percent for the two-week TDF during the auction last March 17.
The BSP still offered the seven-day facility for PHP140 billion, and tenders amounted to PHP261.363 billion.
Tenders for the 14-day TDF reached PHP408.046 billion, more than the PHP340-billion offer, which is also the same as last week’s offer volume.
Both tenors were fully awarded.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “auction results show that, amid ample financial system liquidity, market yields continue to rise as the Easter holidays and tax season approach.”
“Looking ahead, the BSP will continue to be guided by its assessment of the latest liquidity condition and market developments in the conduct of its monetary operations,” he added. (PNA)
