MANILA – Demand for Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) remains high even after the offer volume has been increased as the offer period for the government’s retail treasury bond (RTB) is ongoing.
The BSP offered a total of PHP320 billion worth of TDF Wednesday and bids reached PHP526.555 billion.
The average rate of all tenors declined.
The BSP offered the seven-day facility for PHP130 billion and bids amounted to PHP198.595 billion. This tenor was fully awarded.
The rate averaged at 1.7554 percent, down from the 1.7557 percent during the auction last July 15.
The bid coverage ratio went down to 1.5277 from 1.8061 last week. Bids last week reached PHP216.74 billion, nearly twice the PHP120-billion offer.
The 14-day facility was offered for PHP120 billion and was fully awarded. Bids amounted to PHP201.9 billion.
Its rate slipped to 1.7549 percent from 1.7564 percent last week.
The bid coverage ratio, meanwhile, rose to 1.6825 from the previous week’s 1.6775 when the PHP110-billion offer was met with PHP184.52 billion worth of tenders.
Tenders for the 28-day facility reached PHP126.06 billion, more than the PHP70-billion offer. The auction committee made a full award.
The average rate went down to 1.7560 percent from the previous auction’s 1.7585.
Bid coverage ratio declined to 1.8009 from week-ago’s 1.8188 when the PHP60-billion offer was met with PHP109.13 billion worth of bids.
BSP Deputy Governor Francisco Dakila Jr. said the rate of the seven-day facility went down by 0.03 basis points, the 14-day facility by 0.15 basis points, the 28-day facility by 0.25 basis points.
“Today’s results show continued market interest for the BSP’s deposit facilities even with the public offering of the Bureau of the Treasury’s retail treasury bonds, indicating sufficient liquidity in the financial system. Looking ahead, the BSP will remain guided by its assessment of financial liquidity conditions and market developments in its TDF operations,” he said.
The offer period for the RTB started last July 16 and is scheduled to last until August 7, 2020. (PNA)
