MANILA – Strong demand continues to drive the auction for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facilities (TDF) Wednesday, which also saw the re-offering of the 14-day facility.
Data released by the central bank showed that rate of the seven-day facility’s averaged at 2.2507 percent, down from its 2.2510 percent during the auction last June 3.
BSP offered this facility for PHP120 billion and the auction committee made a full award after tenders totaled to PHP284.139 billion.
Bid coverage ratio increased to 2.3678 from 1.9334 last week, when the facility was offered for PHP170 billion and bids amounted to PHP328.68 billion.
Relatively, average rate of the 14-day TDF went down to 2.2520 percent from 3.7757 percent when this tenor was auctioned last March 11, or before the implementation of the enhanced community quarantine (ECQ).
This was offered for PHP20 billion and tenders reached PHP70.65 billion.
Bid coverage ratio increased to 3.5325 percent from 1.4169 percent in the previous auction when this facility was offered for PHP50 billion and tenders reached PHP70.844 billion.
BSP Deputy Governor Francisco Dakila Jr. said interest rate of the seven-day TDF went down by 0.026 basis points while the 14-day’s declined by 152.37 basis points.
He explained that results of the TDF auction this week “show strong market interest for BSP’s deposit facilities as financial system liquidity further stabilize.”
“The BSP will continue to assess closely market developments and liquidity conditions in determining the volume and tenors in its TDF operations,” he added. (PNA)
