MANILA – Ample domestic liquidity remains the main reason for the strong take-up on the Bangko Sentral ng Pilipinas’ (BPS) seven-day term deposit facility (TDF) Wednesday.
Data released by the central bank showed that only this tenor was offered, with the amount at PHP170 billion. This was fully awarded after bids reached PHP328.68 billion.
Its rate declined by 0.063 basis points to 2.2510 percent from last week’s 2.2516 percent.
Bid coverage ratio improved to 1.9334 from the previous week’s 1.8250 when the facility was offered for PHP150 billion and received tenders amounting to PHP273.755 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. attributed the outcome of this week’s TDF auction to “the market’s continued interest for BSP’s deposit facilities amid ample liquidity in the financial system.”
“Looking ahead, the BSP will be guided by its assessment of prevailing financial market liquidity, taking into account the continued normalization of liquidity conditions with the gradual restarting of business activities in June, in deciding on the volume and maturities of its TDF operations,” he added.
(PNA)
