MANILA - Banks' decision to continue holding on to their funds resulted in the upticks in the rates of the Bangko Sentral ng Pilipinas' (BSP) term deposit facility (TDF), as well as undersubscription for the one-week facility.
BSP data show that the average rate of the seven-day TDF rose to 6.3445 percent from 6.3037 percent during the auction last Jan. 25.
The rate of the 14-day facility also inched up to 6.3510 percent from last week's 6.3457 percent.
In a statement on Thursday, BSP Deputy Governor Francisco Dakila Jr. said accepted yields for the one-week facility "narrowed to 6.2500-6.4375 percent" and to 6.2000-6.4175 percent for the two-week TDF.
Meanwhile, the BSP lowered the offer volume for the seven-day TDF to PHP150 billion from the previous auction's PHP180 billion, and the two-week facility to PHP120 billion from PHP140 billion previously.
Dakila said this was "based on actual bids received last week."
Tenders for the seven-day facility reached PHP145.279 billion, which the auction committee fully awarded.
Bids for the 14-day TDF surpassed the offer volume after it totalled to PHP132.544 billion. The auction committee made a full award.
Dakila said total bids during this week's TDF auction "was within the BSP's expected volume range."
"The results of the TDF auction came as eligible counterparties tended to immediate client requirements. Moving forward, the BSP's monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments," he said. (PNA)