Bangko Sentral Issues P170B Term Deposit Facility

The seven-day term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) registered under subscription during the auction this week, but rates of both the one and two-week tenors rose.

Photo Insert: Data released by the central bank showed that the offer volume for the seven-day TDF was increased to PHP170 billion from last week’s PHP160 billion.

Data released by the central bank showed that the offer volume for the seven-day TDF was increased to PHP170 billion from last week’s PHP160 billion.

However, total tenders amounted to PHP160.051 billion, which the auction committee fully accepted.

The average rate of the facility, which is among the central bank’s excess liquidity mopping tools, increased to 1.7371 percent from 1.7046 percent during the auction last September 22.

On the other hand, bids for the 14-day facility reached PHP380.562 billion, higher than the PHP360-billion offer. The auction committee made a full award. The average rate of this tenor inched up to 1.7443 percent from last week’s 1.7439 percent.

In a statement, BSP Deputy Governor Francisco Dakila Jr. said results of this week’s TDF auction “are in line with current market conditions amid sustained ample liquidity in the financial system.”

“Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added.

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