MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose on Wednesday and the seven-day facility registered undersubscription.
Data released by the central bank showed that the average rate of the seven-day TDF rose to 6.5537 percent from 6.5070 percent during the auction last March 8.
The average rate of the 14-day facility increased to 6.6057 percent from last week’s 6.5387 percent.
The BSP hiked the offer volume for the one-week facility to PHP220 billion from last week’s PHP200 billion.
Tenders, however, totaled only PHP210.861 billion. The auction committee awarded PHP210.36 billion.
Bids for the 14-day TDF amounted to PHP133.334 billion, higher than the PHP120 billion offer, which is lower than last week’s PHP140 billion. The auction committee made a full award.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said volume of bids submitted in this week’s TDF auction “was within the BSP’s expected volume range.”
He said the central bank kept the total volume offering at PHP340 billion “based on actual bids received last week.”
“The results of the TDF auction fell within expectations amid broadly robust demand for BSP facilities even as market participants tended to client requirements,” Dakila said.
He added “BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments.” (PNA)
