MANILA -- The Bangko Sentral ng Pilipinas (BSP) only issued its term deposit facilities (TDFs) in partial this week as bids across three tenors were undersubscribed during Thursday’s auction.
The BSP reported that tenders for the PHP30 billion TDF with six days tenor only reached PHP18.71 billion. The central bank awarded PHP15.71 billion of the short-term TDF at 5.1903 percent rate.
The 13-day TDF offered at PHP10 billion was likewise undersubscribed at P8.7 billion. BSP only awarded PHP6.7 billion at an average rate of 5.2014 percent.
For the long-term facility, bids for 27-day TDF offered at PHP10 billion only fetched bids amounting to PHP7.81 billion, but the central bank only accepted PHP6.81 billion of the total tenders. Rate for the 27-day TDF settled at 5.2094 percent.
The central bank issues TDFs for liquidity management. Due to the BSP’s inability to issue its own debt instruments, the TDF will be tasked to withdraw a large part of the structural liquidity from the financial system to bring market rates closer to the BSP policy rate, the central bank explained. (PNA)
