Oliver Bugarin 4 0 0 3 min to read

TDF rates at BSP continue to grow.

On Wednesday, the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP), which is raising its policy rates, recorded another rate increase.

The seven-day facility’s average rate rose to 3.8051 percent, and the 14-day facility’s to 3.8454 percent.

During the auction last August 25, they were at 3.7876 percent for the one-week facility and 3.8099 percent for the two-week tenor.

Both tenors’ offer volumes were increased by the BSP, and both were oversubscribed.

From PHP120 billion last week, it boosted the offer volume for the one-week facility to PHP140 billion.

After bids reached PHP195.304 billion, this was totally awarded.

The offer volume for the 14-day TDF was raised from PHP80 billion in the prior auction to PHP100 billion.

Additionally, this tenor received a complete grant after bids totaling PHP122.3 billion.

The overall number of tenders submitted during this week’s TDF auction, according to a statement from BSP Deputy Governor Francisco Dakila Jr., is “near the upper end of the BSP’s expected volume range.”

According to the TDF auction results, market participants preferred the shorter tenor more, he said.

The 50 basis point hike in the BSP’s benchmark rates on August 18 and the “US Federal Reserve’s continuing interest rate increases to bring inflation under control,” he said, were to blame for the rate increase.

He continued, “For its part, the BSP’s monetary operations will continue to be guided by its assessment of the most recent market developments and liquidity conditions.”

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