Fri, 03 Feb 2023

MANILA - Investors preferred the 14-day term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) over the shorter tenor on Wednesday, which resulted in the mixed directions of its rates.
Data released by the central bank showed that the two-week facility was offered for PHP140 billion, lower than the PHP160 billion offering last week.
The auction committee made a full award after bids reached PHP153.797 billion.
However, the seven-day facility was undersubscribed after tenders amounted to PHP173.577 billion, lower than the PHP180-billion offer. The auction committee accepted all the tenders.
The BSP reduced the TDF offerings this week from last week's PHP190 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said they lowered the offer volume for the TDF in this week's auction "based on actual bids received last week."
"Nonetheless, total tenders received reached P327.374 billion, which was within the BSP's expected volume range," he said.
The average rate of the seven-day facility rose to 6.3037 percent from 6.2973 percent during the auction last Jan. 18, while the rate of the 14-day TDF slipped to 6.3457 percent from 6.3733 percent last week.
Dakila said "yields accepted for the seven-day tenor narrowed to 6.2000-6.4300 percent, while that for the 14-day tenor also narrowed to 6.1750-6.4388 percent."
"The results of the TDF auction came as eligible counterparties' preference tilted towards the longer tenor for cash management purposes, while others tended to client requirements," he said.
He added the central bank's "monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments." (PNA)
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