MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose on Wednesday, with preference for the shorter-dated tenor, ahead of the policy rate setting meeting of the central bank’s Monetary Board (MB).
The average rate of the seven-day facility inched up to 6.3559 percent from 6.3480 percent during the auction on Feb. 8.
The rate of the 14-day facility increased to 6.3802 percent from last week’s 6.3654 percent.
The BSP hiked the offering for both tenors to PHP190 billion for the one-week facility, and to PHP140 billion for the two-week facility.
These were at PHP140 billion and PHP120 billion for the seven-day and 14-day TDF, respectively, during the auction last week.
The auction committee made a full award for the one-week TDF after tenders reached PHP309.542 billion but partially awarded the 14-day tenor at PHP114.325 billion after bids only amounted to PHP122.395 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said total bids submitted in this week’s TDF auction “was well above the BSP’s expected volume range.”
Dakila said accepted yields for the one-week facility “shifted lower but widened to 6.2500 to 6.3780 percent, while that for the 14-day tenor also widened to 6.2508 to 6.4800 percent.”
“The results of the TDF auction reflected strong demand for the shorter tenor with the BSP’s policy meeting slated for 16 February. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
