Preference for the shorter-dated term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) remained on Wednesday but rates of both the seven- and 14-day facilities fell. The BSP kept the offer volume for the one-week TDF at PHP160 billion but tenders reached PHP170.616 billion. The auction committee made a full award. It also again offered the 14-day facility for PHP120 billion but bids only reached PHP109.109 billion. The auction committee awarded PHP108.509 billion. The rate of the shorter-dated facility slipped to 6.5902 percent from 6.5936 percent during the auction on Aug. 23. The average rate of the two-week TDF also went down to 6.5984 percent from last week’s 6.6000 percent. In a statement, BSP Deputy Governor Francisco Dakila Jr. said the results of the TDF auction this week ‘reflected market participants’ lingering preference for the shorter tenor amid the need to attend to client requirements.’ ‘Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of prevailing liquidity conditions and market developments,’ he added.
Source: Philippines News Agency