MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose across-the-board Wednesday but demand remained high due to ample domestic liquidity.
Data released by the central bank showed that the rate of the seven-day TDF rose to 1.7542 percent, the 14-day to 1.7566 percent, and the 28-day to 1.7655 percent.
These were at 1.7535 percent, 1.7543 percent, and 1.7594 percent for the seven-day, 14-day, and 28-day TDF during the auction last July 28.
BSP offered the shortest tenor TDF for PHP140 billion and was fully awarded. Tenders reached PHP196.23 billion.
The bid coverage ratio is at 1.4016, lower than last week’s 1.5342 when this was offered for PHP140 billion and received tenders amounting to PHP214.785 billion.
Tenders for the 14-day TDF amounted to PHP247.365 billion, higher than the PHP180-billion offer. The auction committee made a full award.
The bid coverage ratio declined to 1.3743 from last week’s 1.5049. Tenders last week reached PHP210.68 billion, higher than the PHP140-billion offer.
Total bids for the 28-day facility reached PHP82.895 billion, higher than the PHP60-billion offer, which was fully awarded.
The bid coverage ratio stood at 1.3816, lower than the 1.5485 last week when this tenor was offered for PHP80 billion and tenders reached PHP123.88 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said demand for the TDF remains robust this week even with the ongoing five-year treasury bond (T-bond) offer of the Bureau of the Treasury (BTr), which will end on Friday.
He said demand is also high despite the reimposition of the modified enhanced community quarantine (MECQ) in the National Capital Region, Bulacan, Laguna, Rizal, and Cavite for 15 days from August 4 to 18.
He said the strong demand “indicates that liquidity in the financial system remains ample.”
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
