BSP TDF AUCTION UNDERSUBSCRIBED
EIREENE JAIREE GOMEZ
YIELDS rose during Tuesday’s term deposit facility (TDF) auction with the Bangko Sentral ng Pilipinas awarding just P232.469 billion of the P330 billion on offer.
“The results of the TDF auction continue to reflect the passthrough of the recent BSP policy rate hike,” BSP Deputy Governor Francisco Dakila Jr. said in a statement.
“In addition, the undersubscriptions could be attributed to eligible counterparties’ increased preference for cash in preparation for the holidays,” he added.
The total volume allocated for the seven-day and eight-day tenors was P180 billion (from P200 billion) and P150 billion (from P160 billion), respectively.
The auction committee awarded P110.737 billion for the eightday tenor, lower than P111.737 billion tendered. Meanwhile, it accepted all bids received for the 15-day tenor amounting to P121.732 billion.
The resulting weighted average interest rates (WAIR) continued
to rise from last week. That for the shorter TDF increased by 25.9370 basis points (bps) to 5.7514 percent while the WAIR for the 15-day TDF rose by 20.2688 bps to 5.8662 percent.
Yields accepted also shifted higher but narrowed to a range of 5.4900 to 6.0250 percent for the eight-day tenor and 5.6000 to 6.1750 percent for the 15-day tenor.
“Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” Dakila said.
The Manila Times