THE central bank, Bangko Sentral ng Pilipinas, has raised its volume offer for the term deposit facility (TDF) auction due on August 31 to P80 billion for 28-day tenor while retaining the volume for 7-day tenor at P10 billion.
Thus the total volume available on August 31 for auction under the Interest Rate Corridor (IRC) is P90 billion.
In the auction held yesterday (Aug 17), P70 billion worth of TDF were awarded—P60 billion in the 28-day tenor and P10 billion in seven-day tenor while rejecting most of the over P220 billion tenders for the liquidity management tool.
Of the total tenders, P51.08 billion was for the seven-day term deposit, and P171.92 billion for the 28-day term deposit—far exceeding the P10 billion and P60 billion set respectively for the auction.
The offer was oversubscribed with the auction priced at an average of 2.5 percent for both tenors.