NextGen Day

MANILA, Philippines — Following the raise in the central bank’s main rates last week, rates on the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) climbed again on Wednesday, with the seven-day facility being undersubscribed.

The one-week facility’s average rate jumped to 2.1962 percent, while the 14-day facility’s rate increased to 2.2369 percent, according to data issued by the central bank.

During the auction on May 18, they were at 1.9823 percent and 2.0932 percent for the one-week and two-week TDF, respectively.

The BSP boosted the offer volume for the one-week facility from PHP120 billion to PHP130 billion this week.

The auction committee accepted all of the bids, which totaled PHP114.843 billion. The bid coverage ratio was 0.8834.

In addition, the offer volume for the 14-day TDF has been boosted to PHP150 billion from PHP140 billion last week.

A full prize was made by the auction committee. The bid coverage ratio was 1.2413.

TDF is one of the methods used by the central bank to absorb excess liquidity in the economy.

In a statement, BSP Deputy Governor Francisco Dakila Jr. linked the increase in TDF rates to the central bank’s key rates increasing by 25 basis points on May 19, the first since 2018 and following a total of 200 basis points decrease in 2020.

“The TDF auction results continue to illustrate that the financial sector has enough of liquidity.” The BSP’s monetary operations would continue to be guided by its assessment of current liquidity conditions and market developments in the future,” he added.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---