MANILA – A ranking Bangko Sentral ng Pilipinas (BSP) attributed to normalization of domestic liquidity situation the mix results of the central bank’s term deposit facility (TDF) auction Wednesday.
Rate of the seven-day TDF declined to 1.7708 percent and the 14-day to 1.8347 percent but the average rate of the 28-day rose to 1.8232 percent.
These were at 1.7810 percent, 1.8658 percent, and 1.770 percent for the 7-day, 14-day, and 28-day facility during the auction last August 12.
All the tenors were oversubscribed and were fully awarded
The BSP offered the shortest tenor facility for PHP90 billion and received tenders amounting to PHP135.31 billion.
Bid coverage ratio stood at 1.5034, better than its 0.7041 last week when this tenor was offered for PHP140 billion, and received tenders amounting to PHP98.58 billion.
The 14-day TDF attracted PHP157.75 billion worth of tenders, higher than the PHP90-billion offer.
Bid coverage ratio is at 1.7528, better than the previous week’s 0.8010 when this tenor was offered for PHP130 billion and bids were lowered at PHP104.13 billion.
Tenders for the longest-tenor TDF reached PHP79.17 billion, higher than the PHP50-billion offer.
Bid coverage ratio rose to 1.5834 from last week’s 1.2446 when this tenor was offered for PHP50 billion and received tenders amounting to PHP62.23 billion.
“The auction results show that liquidity conditions have normalized following the temporary effect of the scheduled settlement of the retail treasury bonds last week, and remains ample,” BSP Deputy Governor Francisco Dakila Jr. said.
Dakila added “going forward, the BSP’s monetary operations will continue to be guided by its assessment of liquidity conditions and market developments.” (PNA)
