The rate of Bangko Sentral ng Pilipinas’ Term Deposit Facility (TDF) rose across-the-board on Wednesday, even as it decided to keep the volume of its term deposit offerings for next week, despite mixed level of interest across tenors during the week.
The 7-day TDF, in particular, fetched a rate of 3.7797 percent for the week, up from last week’s 3.7405 percent.
For the 14-day TDF, the rate hit 3.9234 percent from the previous week’s 3.9016 percent. The 28-day TDF, meanwhile, hit 3.962 percent from the previous week’s 3.9605 percent.
All rates, however, are still below the BSP’s current main policy rate of 4 percent.
The volume offered for the week remained at a total P100 billion, with P40 billion offered in the 7-day term deposit facility (TDF), another P40 billion in the 14-day TDF and P20 billion in the 28-day TDF.
This level of auction volume has been in place since June this year.
BSP officials earlier said that aside from monetary policy rate changes, the monetary board could also steer their monetary policy direction by allowing the market determined TDF rates to rise or fall.
The BSP does this by altering auction volumes.
The volumes were kept steady despite a mix of oversubscription and undersubscription across tenors.
In particular, bids for the 7-day TDF were oversubscribed, hitting a total tendered amount of P65.44 billion for the week.
This is in contrast with the 2 other facilities where undersubscription was seen during the week.
Bids in the 14-day TDF hit only P33.285 billion, not enough to cover the P40 billion offered by the BSP for the week. Meanwhile, tenders for the 28-day TDF was at P11.46 billion, short of the P20 billion offered for the week.
All tenors fetched higher rates for the week.
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