Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila Jr. (PNA file photo)
MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined on Wednesday amidst the slight undersubscription for the 14-day tenor.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the average rate of the one-week facility slipped to 6.5863 percent from 6.5926 percent during the auction last May 24.
The average rate of the 14-day TDF also went down to 6.5852 percent from last week’s 6.5935 percent.
The BSP hiked the offer volume for both tenors to PHP120 billion for the one-week facility and to PHP100 billion for the two-week tenor.
Last week, the one-week tenor was offered for PHP110 billion and the two-week TDF for PHP80 billion.
The BSP made a full award for the seven-day TDF after bids amounted to PHP123.506 billion but only awarded PHP94.3 billion for the two-week facility after tenders amounted to PHP98.3 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said volume of bids submitted in this week’s TDF auction is “well within the BSP’s expected range of volume.”
“The results of the TDF auction showed continued ample financial system liquidity, reflected by the increased total tenders received. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
