Yields on the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) slightly declined at its Wednesday auction, following a reduction in total offerings.
The BSP said it fully awarded P40 billion for the 14-day tenor amid oversubscription, while it accepted P28.675 billion in tenders for the 7-day tenor.
Total tenders reached P74.450 billion, with the 14-day facility attracting P45.775 billion in bids. This was up from the P71.360 billion in total tenders during the Aug. 20 auction, despite a reduction in offer volume.
The BSP reduced the total TDF offering to P80 billion, lowering both the 7-day and 14-day offerings to P40 billion each.
The weighted average interest rate for the 7-day TDF decreased by 0.82 basis point (bp) to 5.2475 percent, while the rate for the 14-day TDF dropped 0.79 bp to 5.2675 percent.
This widened the range of accepted yields, with the 7-day tenor ranging from 5.1650 percent to 5.2700 percent and the 14-day tenor from 5.2400 percent to 5.2799 percent.
 term deposit facility (TDF) slightly declined at a recent auction as the central bank reduced its total offerings.){kind=link}