MANILA – Interest rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined on Wednesday but preference favored the 14-day facility.
The average rate of the seven-day facility went down to 6.5898 percent from 6.5939 percent during the auction last April 12.
The rate of the 14-day TDF declined to 6.6095 percent from last week’s 6.6362 percent.
The BSP kept the offer volume for the one-week facility at PHP170 billion but bids only reached PHP149.549 billion. The auction committee awarded PHP143.699 billion.
The two-week facility was again offered for PHP130 billion but only PHP127.732 billion was awarded despite bids hitting PHP131.932 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said bids submitted in this week’s TDF auction are “within the low end of the BSP’s expected range of volume.”
“The results of today’s TDF auction reflected the anticipated lower liquidity this week as eligible counterparties allocated funds for tax remittances, loan availments and month-end client requirements,” he said.
He, however, said that the “financial system liquidity remains ample.”
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
