Bangko Sentral ng Pilipinas building in Manila (Photo by Benedicto Briones)
MANILA – Demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) was strong on Wednesday as bids exceeded the offering, but rates increased.
The BSP reduced the offer volume for the seven-day facility to PHP130 billion from PHP150 billion during the auction on July 19.
The auction committee made a full award after tenders amounted to PHP135.05 billion.
The offering for the 14-day TDF was also reduced this week to PHP100 billion from last week’s PHP130 billion.
This tenor was also fully awarded after bids amounted to PHP123.54 billion.
The rates of both tenors rose this week.
The average rate of the shorter-dated facility increased to 6.5806 percent from last week’s 6.5763 percent.
The rate of the two-week TDF also inched up to 6.5864 percent from 6.5843 percent previously.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said the range of yields that was accepted for the shorter-dated facility narrowed to between 6.5500 percent and 6.6075 percent but those for the two-week TDF “slightly widened to 6.5000-6.6090 percent.”
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of prevailing liquidity conditions and market developments,” he added. (PNA)
