MANILA – The Bangko Sentral ng Pilipinas (BSP) has increased the offer volume for the term deposit facility (TDF) this week but this remains oversubscribed, with rates generally on the decline.
Data released by the central bank showed that the offering for the seven-day facility was hiked to PHP180 billion from PHP170 billion during the auction last November 3.
Total tenders reached PHP204.327 billion.
The rate of this tenor moved sideways to 1.7421 percent from last week’s 1.7430.
Total bids for the 14-day facility reached PHP356.17 billion, higher than the PHP340-billion offer, which is also higher than the previous week’s PHP330-billion offer.
The average rate of the 14-day TDF continued to slip this week to 1.7636 percent from last week’s 1.7696 percent.
TDF is one of the central bank’s tools targeted to mop up excess liquidity in the economy.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said results of this week’s TDF auction “continue to reflect the 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 said. (PNA)