MANILA – The rates of the central bank’s term deposit facility (TDF) registered varied results anew on Wednesday, with demand seen stronger for the seven-day facility.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the average rate of the seven-day TDF declined to 1.7486 percent from 1.7586 percent during the auction on December 9, while the rate of the 14-day TDF rose to 1.8572 percent from last week’s 1.8241 percent.
The BSP lowered the offer volume for both tenors this year to PHP150 billion for the one-week facility and PHP250 billion for the two-week facility. Both were fully awarded.
Last week, the seven-day TDF was offered for PHP160 billion and the 14-day for PHP270 billion.
Tenders for the shorter tenor reached PHP242.034 billion, while it amounted to PHP260.629 billion for the longer tenor.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said TDF results for this week “remain in line with the BSP’s assessment that liquidity in the financial system remains ample.”
Dakila said the observed preference of market participants for the shorter tenor is attributed to seasonal effects as banks prepare to service higher cash demand during the holidays.
“Going forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
