By Joann Villanueva/Philippine News Agency
MANILA – The Bangko Sentral ng Pilipinas (BSP) further increased the offering under its Term Deposit Facility (TDF) for the auction on Wednesday.
Data released by the central bank Monday showed that both the seven and 14-day facilities will be offered for PHP30 billion, higher than the PHP20-billion offering for both tenors during the auction last July 10.
On the other hand, the 28-day facility will still be offered for PHP20 billion.
The increase was due to the large tenders that banks have been submitting in the previous week’s auctions.
During the auction last July 10, bids for the seven-day facility reached PHP27.82 billion while it was PHP33.365 billion for the 14-day facility and PHP22.74 billion for the 28-day facility.
BSP Governor Benjamin Diokno earlier attributed the large bids to the TDF facilities partly due to the increase in domestic liquidity in line with the cut in banks’ reserve requirement ratio (RRR), which is expected to release about PHP90 billion for a 100-basis-point cut.
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