BSP Deputy Governor Francisco Dakila Jr. (Photo courtesy of BSP)
MANILA – The central bank’s 14-day term deposit facility (TDF) again registered undersubscription on Wednesday, but rates of both the seven- and the 14-day tenor rose.
The Bangko Sentral ng Pilipinas (BSP) hiked by PHP10 billion the volume offering for each tenor in this week’s TDF auction to PHP160 billion for the shorter-dated facility, and to PHP140 billion for the two-week TDF.
Tenders for the one-week facility reached PHP167.147 billion. The auction committee made a full award.
However, the bids for the longer-dated TDF only amounted to PHP130.135 billion. The auction committee accepted PHP128.935 billion.
Despite the lower-than-offered amount submitted for the two-week facility, BSP Deputy Governor Francisco Dakila Jr. said total tenders in this week’s TDF auction is “well within the BSP’s expected range of volume.”
Meanwhile, the rate of the seven-day TDF rose to 6.5932 percent from 6.5888 percent during the auction last Aug. 2, and that of the 14-day’s to 6.5974 percent from last week’s 6.5903 percent.
“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of prevailing liquidity conditions and market developments,” Dakila added. (PNA)
