MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined Wednesday, partly as investors took note of monetary authorities’ decision to keep the central bank’s key rates steady last week.
Data released by the BSP showed that the average rate of the seven-day TDF went down to 1.8280 percent from 1.8432 percent during the auction last March 24.
The average rate of the 14-day facility slipped to 1.8727 percent from 1.8898 percent last week.
The BSP kept the offer volume for the shorter-dated TDF at PHP140 billion and the 14-day facility at PHP340 billion. Both were oversubscribed and fully awarded.
Tenders for the seven-day facility reached PHP226.288 billion while it amounted to PHP458.79 billion for the two-week TDF.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said, “results of the TDF auction continue to show ample liquidity in the financial system and are in line with the market preference for safe assets as they factor in the BSP’s unchanged policy rate and the reimposition of stricter quarantine measures.”
“For its part, the BSP will remain guided by its assessment of the latest liquidity condition and market developments in the conduct of its monetary operations,” he added. (PNA)
