MANILA – The average rate of the Bangko Sentral ng Pilipinas’ (BSP) seven-day term deposit facility (TDF) continued to slide, data from the central bank showed.
The rate of the TDF slipped to 2.2516 percent this week from 2.2543 percent during the auction last May 20.
BSP Deputy Governor Francisco Dakila Jr. said the rate of the facility went down by 0.269 basis points from last week’s level.
The BSP offered this for PHP150 billion and bids were nearly twice at PHP273.755 billion.
The auction committee made a full award.
Bid coverage ratio this week is lower at 1.8250 from last week’s 2.0171 when the facility was offered for PHP120 billion and tenders reached PHP242.052 billion.
Dakila attributed the strong demand for the facility to “market preference for the BSP’s deposit facilities amid ample liquidity in the financial system.”
“The BSP will continue to assess financial liquidity conditions to determine the appropriate auction volume and tenors for the TDF,” he added. (PNA)
