The Bangko Sentral ng Pilipinas (BSP) said its P180 billion term deposit facility (TDF) again failed to draw enough subscription at Wednesday’s auction as the market preferred government securities. The seven-day tenor was also undersubscribed at P35.05 billion, prompting the BSP to award the same amount, compared to the P40 billion that was offered. Guinigundo said the auction results were expected by the central bank. “Thus, we continue to assess various IRC [Interest Rate Corridor] features including the volume of weekly auction,” he added. TDF is one of the liquidity-mopping tools introduced by the BSP following the adoption of the IRC in June 2016.

Source: Manila Times July 26, 2017 17:03 UTC