MANILA – Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) attracted lower bids last Wednesday but a ranking central bank official said the volume of tenders is within their expectations.
Central bank reduced the offering for the seven-day TDF to PHP150 billion from PHP190 billion during the auction last July 12.
However, bids submitted in this week’s auction only reached PHP147.124 billion, which the auction committee fully accepted, BSP Deputy Governor Francisco Dakila Jr. said in a statement issued Thursday.
Also, BSP slashed the offering for the 14-day tenor to PHP130 billion from last week’s PHP160 billion.
Bids reached PHP119.885 billion, which was also fully accepted by the auction committee.
Dakila said the total bids submitted in this week’s TDF auction “was within the BSP’s expected volume range.”
Relatively, rates of both tenors slipped from last week’s level.
The average rate of the shorter-dated tenor slipped to 6.5763 percent from last week’s 6.5789 percent.
Also, the rate of the two-week facility went down to 6.5843 percent from 6.5886 percent previously.
Dakila said auction results “revealed sustained demand for the TDF even as market participants tended to client requirements.”
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of prevailing liquidity conditions and market developments,” he added. (PNA)