MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) seven and 14-day term deposit facilities (TDF) declined anew Wednesday unlike that of the 28-day facility, but demand for all tenors remained high.
Rate of the shortest tenor fell to 1.7535 percent from 1.7554 percent during the auction last July 22.
The BSP offered this facility for PHP140 billion and received PHP214.785 billion worth of tenders. This was fully awarded.
Bid coverage ratio increased to 1.5342 from last week’s 1.5277 when this was offered for PHP130 billion and attracted PHP198.595 billion worth of bids.
Rate of the 14-day facility went down to 1.7543 percent from last week’s 1.7549 percent.
Tenders reached PHP210.68 billion, higher than the PHP140 billion offer. The auction committee made a full award.
Bid coverage ratio stood at 1.5049, lower than the 1.6825 in last week’s auction when this tenor was offered for PHP120 billion, and received PHP201.9 billion worth of tenders.
On the other hand, the average rate of the longest tenor TDF rose to 1.7594 percent from last week’s 1.7560 percent.
Bid coverage ratio declined to 1.5485 from last week’s 1.8009.
This was offered and fully awarded for PHP80 billion this week after bids totaled to PHP123.88 billion.
Last week, this tenor was offered for PHP70 billion and tenders amounted to PHP126.06 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said demand for the TDF remains high despite the ongoing five-year retail treasury bond (RTB) offer of the Bureau of the Treasury (BTr).
He attributed the strong demand for the term facility to “continued ample liquidity.”
“Today’s TDF auction results will be factored into the BSP’s continuing assessment of liquidity conditions and market developments that will guide succeeding monetary operations,” he added. (PNA)
