MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) fell on Wednesday, which a ranking central bank official traced to strong demand for the debt paper.
The average rate of the seven-day TDF slipped to 6.5902 percent from 6.5939 percent during the auction on April 12.
The rate of the 14-day TDF also declined to 6.6153 percent from 6.6362 percent last week.
The BSP kept the offer volume for the one-week facility at PHP170 billion and for the two-week TDF at PHP130 billion.
Both tenors were fully awarded after bids for the one-week TDF reached PHP184.251 billion while tenders for the longer tenor amounted to PHP145.721 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said bids for the TDF in this week’s auction “settled within the BSP’s expected volume range.”
Dakila said the range of yields accepted for both tenors “shifted lower and widened,” with the figures for the one-week tenor ranging from 6.3000 percent to 6.6288 percent and those from the two-week facility from 6.5000 percent to 6.6400 percent.
“The results of the auction reflected market participants' sustained demand for the TDF. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
