Yields on the Bangko Sentral ng Pilipinas’ (BSP) seven-day and 14-day term deposit facility (TDF) amid strong demand, the bank said Wednesday.
The BSP fully awarded P100 billion worth of TDF offerings at its auction on July 23. This was a reduction from the initial offer of P120 billion, with P50 billion allotted for both the seven-day and 14-day offerings instead of P60 billion each.
Both tenors were oversubscribed, with the seven-day offering receiving P71.503 billion in tenders and the 14-day getting P72.806 billion offers.
As a result, total tenders rose to P144.309 billion from P115.005 billion tendered in the TDF auction on July 16.
Interest rates for the seven-day TDF declined by 0.47 basis point (bp), with its weighted average settling at 5.2568 percent. The interest rate for the 14-day TDF also decreased by 0.53 bp, settling at 5.3234 percent.
These movements narrowed the range of accepted yields to between 5.2300 percent and 5.2675 percent for the seven-day tenor, and 5.2500 percent and 5.3595 percent for the 14-day tenor.
“BSP’s term deposit facility auction saw good demand,” the BSP said in its statement.
