Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility fell on Wednesday on weak demand.
The average rate of the eight-day TDF went down by 0.36 basis points to 6.5119 percent from 6.5155 percent for the seven-day tenor during the auction on Aug. 7.
Rate of the 14-day facility slipped 0.83 basis points to 6.5440 percent from last week’s 6.5523 percent.
The BSP kept the offering for the eight-day TDF at P80 billion, but lowered the volume for the longer tenor to P80 billion from P100 billion last week.
Bids for the shorter-dated TDF reached P40.096 billion and those for the two-week tenor amounted to P65.755 billion, for a total of P105.851 billion. The BSP accepted P36.596 billion for the eight-day TDF and P64.755 billion for the 14-day.
“This week’s lower demand was attributed in part to market participants’ liquidity requirements for loan releases and deposit maturities,” BSP Deputy Governor Francisco Dakila Jr. said.
