MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) continue to slip as demand remains high.
Data released by the central bank Wednesday showed that average rate of the seven-day facility declined to 2.2505 percent from 2.2507 percent during the auction last June 10.
It was offered for PHP120 billion, same as last week’s level, and received bids amounting to PHP268.44 billion. The auction committee made a full award.
Bid coverage ratio went down to 2.2370 from last week’s 2.3678.
Rate of the 14-day facility dropped to 2.2512 percent from last week’s 2.2520 percent.
Offering for this week was increased to PHP30 billion from last week’s PHP20 billion.
Bids totaled to PHP91.58 billion, higher than last week’s 70.65 billion, resulting in a lower bid coverage ratio of 3.0527 from the previous auction’s 3.5325.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said average rate of the seven-day facility declined by 0.025 basis points while the drop of interest rate for the longer tenor is 0.088 basis points.
He attributed the robust demand for the TDF to “ample financial system liquidity.”
“Looking ahead, the BSP will be guided by its assessment of prevailing market conditions and financial liquidity in the calibration of the volume and tenors in its TDF operations,” he added. (PNA)
