MANILA – The average rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined Wednesday and the two-week facility attracted lower bids.
BSP data show that the rate of the eight-day facility, one day longer than the usual one-week tenor due to the national holiday on June 28 for the celebration of Eid’l Adha, slipped to 6.5835 percent from 6.5933 percent during the auction last June 14.
The rate of the 14-day tenor averaged 6.5966 percent from last week’s 6.5981 percent.
The BSP lowered the offering for the eight-day TDF to PHP120 billion from last week’s PHP130 billion. Bids reached PHP144.275 billion and the auction committee made a full award.
On the other hand, tenders for the two-week facility amounted to PHP91.658 billion, lower than the PHP110 billion offering, which is the same as last week.
The auction committee accepted PHP86.658 billion worth of bids.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said total bids in this week’s TDF auction “was within the BSP’s expected volume range.”
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of prevailing liquidity conditions and market developments,” he added. (PNA)