THE central bank has raised the weekly volume of the term deposit facility (TDF) to P110 billion from the current P90 billion.
The Bangko Sentral ng Pilipinas (BSP) is raising the 28-day TDF offer to P100 billion from P80 billion, starting October 5.
“The increase in the 28-day auction is part of the auction refinement program,” BSP Governor Amando
Tetangco Jr. said in a text message to reporters, noting “the adjustment has been for the longer tenor so far, because that is where we find greater market appetite for now.”
The volume for the seven-day tenor was maintained at P10 billion.
Tetangco noted the BSP can make similar adjustments to the 7-day TDF based on prevailing market conditions.
During Wednesday’s auction, the central bank awarded P90 billion worth of TDF—P80 billion of the 28-day tenor and P10 billion of seven-day TDF. It rejected most of the more than P180 billion of tenders.
The total tenders consisted P34.93 billion for the seven-day term deposit and P148.72 billion for the 28-day facility.
The seven-day TDF was priced at 2.5 percent and the 28-day tenor at 2.52 percent.