STRONG DEMAND. The rates of the Bangko Sentral ng Pilipinas' (BSP) term deposit facility (TDF) declined on Wednesday (April 12, 2023). BSP Deputy Governor Francisco Dakila Jr. traced this to the strong demand for the debt paper. (PNA file photo)
MANILA – High demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) met the higher offer volume, resulting in the rate decline for both the seven-day and 14-day tenors on Wednesday.
Data released by the central bank showed that the average rate of the one-week facility slipped to 6.5939 percent from 6.6359 percent during the auction last April 5.
The rate of the two-week facility also went down to 6.6362 percent from last week’s 6.6465 percent.
The BSP hiked the offer volume for the one-week facility to PHP170 billion from last week’s PHP130 billion.
This tenor was fully awarded after bids reached PHP251.915 billion.
Tenders for the two-week facility amounted to PHP157.706 billion, resulting in the full award of the PHP130 billion offer, which is higher than the PHP100 billion offered last week.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said the hike in the volume offering for this week’s TDF auction was made “based on actual bids received last week.’
Dakila said the range of yields accepted for the seven-day TDF “shifted lower and widened to 6.3750-6.6400 percent, while that for the 14-day narrowed to 6.5995-6.6566 percent.”
“The results of the TDF auction continued to reflect market participants' high demand for both tenors. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
