The Bangko Sentral ng Pilipinas (BSP) said its P180 billion offer of term deposit facility (TDF) was undersubscribed during Wednesday’s auction, warranting a careful analysis of the trend to see if any policy setting must adjusted. The 28-day TDF was undersubscribed anew, attracting only P89.14 billion. The BSP awarded only P89.14 billion against the P140 billion weekly offer. The seven-day tenor was also undersubscribed at P35.23 billion, prompting the BSP to award P35.23 billion, compared to the P40 billion offer. TDF is one of the liquidity-mopping tools introduced by the BSP last year to develop an active and more dynamic policy tool to improve its influence on market rates and ultimately enhance monetary policy.

Source: Manila Times July 19, 2017 17:03 UTC