MANILA – Demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) remained high but its rate posted mixed results Wednesday.
The rate of the seven-day facility rose to 1.7834 percent and the 28-day’s to 1.8481 percent, while the rate of the 14-day facility declined to 1.8317 percent.
These were at 1.7708 percent and 1.8232 percent for the seven- and 28-day facilities, respectively; and 1.8347 percent for the 14-day facility during the auction last August 19.
The BSP offered the shortest tenor TDF for PHP110 billion and tenders totaled to PHP145.84 billion. The auction committee made a full award.
The bid coverage ratio slipped to 1.3258 from last week’s 1.5034 when this tenor was offered for PHP90 billion, and tenders reached PHP135.31 billion.
Tenders for the 14-day facility reached PHP163.54 billion, higher than the PHP110-billion offer. This tenor was fully awarded.
The bid coverage ratio declined to 1.4867 from last week’s 1.7528 when this facility was offered for PHP90 billion and received tenders amounting to PHP157.75 billion.
The longest-tenor TDF’s bid coverage ratio stood at 1.6458, higher than last week’s 1.5834 when this facility was offered for PHP50 billion and tenders reached PHP79.17 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “results of today’s auction continue to show ample liquidity in the financial system.”
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
