MANILA – Strong demand was registered for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) on Wednesday, resulting in the full award of both the seven- and 14-day tenors, but rates declined.
Central bank data show that the BSP increased by PHP20 billion the offering for the seven-day facility to PHP200 billion and the 14-day TDF by PHP30 billion to PHP150 billion.
Tenders for the shorter-dated facility reached PHP231.567 billion and for the two-week tenor amounted to PHP189.537 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said total bids for the TDF in this week’s auction “was above the BSP’s expected range and indicative of market participants’ persistent demand for the facility.”
The rate of the one-week facility slipped to 6.4449 percent from 6.4576 percent during the auction last Sept. 20.
The average rate of the two-week TDF also declined to 6.4649 percent from last week’s 6.4863 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)