MANILA -- The Bangko Sentral ng Pilipinas (BSP) cut the value for its 28-day term deposit facility (TDF) for next week’s auction to PHP20 billion from Wednesday’s offering of PHP30 billion while maintaining the volume for shorter tenor facilities.
Total volume for the next bidding of 7-day, 14-day, and 28-day TDF was reduced to PHP110 billion from PHP120 billion during this day’s auction.
The TDF is a key liquidity absorption facility used by the central bank for liquidity management.
On Wednesday’s auction, all tenors were undersubscribed, making the BSP award TDF’s volume to the same amount of tenders.
The 7-day TDF offered at PHP50 billion only fetched PHP42.589 billion worth of tenders at higher average rate of 3.5866 percent.
Bids for 14-day facility reached PHP32.155 billion, but with lower yield at 3.5783 percent.
The PHP30-billion 28-day TDF attracted PHP23.711 billion of bids at higher rate of 3.5716 percent. (PNA)
