THE rate of the Bangko Sentral ng Pililipinas’ (BSP) term deposit facility rose anew on Wednesday and appetite was for the shorter-dated tenor.
Data released by the central bank showed that the average rate of the seven-day facility rose to 5.9346 percent from 5.7514 percent during the auction last November 29.
The average rate of the 14-day facility inched up to 6.0050 percent from last week’s 5.8662 percent.
The BSP hiked the offer volume for the one week facility to P220 billion from last week’s P180 billion.
This tenor was fully awarded after tenders reached P226.057 billion.
Volume offering for the two-week facility was also increased at P180 billion from P150 billion previously. However, it was undersubscribed after bids only reached P166.534 billion.
The BSP awarded P166.334 billion.
Amid the lower bids for the two-week facility, the central bank said total bids in this week’s TDF auction “was well within the BSP’s expected range of volume.”
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “yields accepted for both tenors likewise shifted higher.”
“However, the seven-day tenor narrowed to a range of 5.7000-6.1250 percent, while the 14-day tenor widened to 5.7500-6.3500 percent,” he said.
Dakila traced the rate upticks to ‘counterparties’ preference for the shorter tenor following the release of the November CPI (consumer price index) data and with a policy decision expected from the BSP” on December 15.