MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) ended mixed on Wednesday ahead of the rate setting meet of the central bank’s policy-making Monetary Board (MB) on Thursday.
Average rate of the seven-day facility inched up to 6.5962 percent from the 6.5882 percent during the auction last May 10.
However, rate of the 14-day TDF averaged at 6.6150 percent, down from last week’s 6.6166 percent.
BSP lowered the offer volume for the one-week TDF from last week’s PHP160 billion to PHP140 billion.
The auction committee accepted PHP138.537 billion from total bids of PHP140.537 billion.
Also, offer volume for the two-week facility was decreased to PHP90 billion from last week’s PHP100 billion.
Tenders reached PHP99.526 billion and the auction committee made a full award.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said tenders submitted in this week’s TDF auction are well within monetary authorities’ expectations.
“Eligible counterparties demonstrated sustained demand in the TDF facility even as the BSP is set to make its monetary policy decision later in the week. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
