The central bank said yesterday it would auction NT$100 billion (US$3.3 billion) in 364-day certificates of deposit (CDs) next week as part of its efforts to mop up liquidity in the money market.
The central bank will conduct the auction next Monday, it said in an e-mailed statement.
It will target banks, bills finance companies, investment trust firms, credit co-operatives and Taiwan Postal Co (
In addition to sales of 30-day, 91-day and 182-day CDs and negotiable CDs daily from Monday to Friday, the central bank normally sells 364-day CDs every month to help control short-term liquidity and prevent excess liquidity from dragging down market rates.
The central bank yesterday sold NT$66.55 billion in 30-day CDs at a fixed rate of 1.92 percent, NT$4.8 billion in 91-day CDs at a rate of 1.99 percent, and NT$1.1 billion in 182-day CDs issued at a rate of 2.07 percent.
The monetary policymaker said in the statement that it would employ a "multiple-rate auction," which means that the alloted yield or coupon rate of the securities will be determined by the rate offered in each individual bid.
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