MANILA -- The rates of both 6-day and 13-day Term Deposit Facilities (TDF) of the Bangko Sentral ng Pilipinas (BSP) declined Thursday, sustaining its downtrend spanning several weeks now.
Data released by the BSP showed that rate of the six-day facility, a day short of the regular seven-day facility due to the holiday on Wednesday, May 1, went down to 4.7198 percent from 4.7567 percent during the auction last April 24.
It was offered for PHP10 billion and banks submitted PHP14.126 billion, lower than the PHP15.024 billion last week. The auction committee made a full award.
With the lower bids for this week, this tenor’s bid coverage ratio slipped to 1.4126 from the previous auction’s 1.5024.
Relatively, rate of the 13-day facility slid to 4.7524 percent from 4.7789 percent last week.
Bid coverage ratio of this facility, which is also a day short of its regular tenor, declined to 1.5518 from 1.9303 last week. Bids amounted to PHP15.518 billion, lower than the PHP19.303 billion.
Although bids to the TDF facility has been on the decline, these remain higher than the offer, which according to BSP Deputy Governor Diwa Guinigundo is proof that domestic liquidity remains adequate. (PNA)
