MANILA – Strong demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) resulted in its full award on Wednesday, with rates down from last week’s level.
The BSP hiked by PHP40 billion the offer volume for both tenors, to PHP200 billion for the seven-day facility and to PHP140 billion for the 14-day TDF.
Bids for the shorter-dated TDF reached PHP248.137 billion and to PHP198.561 billion for the two-week facility.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said total bids submitted in this week’s TDF auction “was within the BSP’s expected range and indicative of market participants’ sustained strong demand for the facility.”
The average rate of the one-week TDF went down to 6.5191 percent from 6.5833 percent during the auction last Sept. 6.
The rate of the 14-day facility slipped to 6.5227 percent from last week’s 6.5872 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)
