CAUTION marked the term deposit facility (TDF) auction on Wednesday ahead of the US Federal Reserve meeting, as bidders flocked to the seven-day tenor, the central bank reported.
“There was more appetite for the shorter tenor. We see this as being due to seasonality and some market cautiousness ahead of the FOMC meeting this w eek,” BSP Governor Amando Tetangco Jr. told reporters in a text message on Wednesday.
The Bangko Sentral ng Pilipinas (BSP) fully awarded the P180-billion TDF. The total bids for the seven- and 28-day facilities reached over P186 billion.
Bids placed in the seven-day tenor totaled P59.11 billion, while the 28-day facility garnered P127.48 billion.
The interest rate for the seven-day facility rose to 2.99 percent from 2.91 percent last week, while that of the 28-day tenor rose to 3.23 percent from 3.15 percent.
The Federal Open Market Committee began its two-day meeting on December 13.
“We will continue to monitor liquidity conditions in the market for the balance of the year as well as expectations for next year to see if there is need to make adjustments to our policy tools going forward,” Tetangco added.