MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose across-the-board Wednesday and demand remained huge due to the high liquidity situation in the domestic economy.
The rate of the seven-day facility rose to 1.813 percent, the 14-day facility to 1.842 percent, and the 28-day facility to 1.861 percent.
These were at 1.783 percent, 1.832 percent, and 1.848 percent for the seven-day, 14-day, and 28-day facility, respectively, during the auction last August 26.
The BSP increased the offering for the seven- and 14-day facilities to PHP130 billion from last week’s PHP110 billion.
Tenders for the seven-day facility reached PHP171.969 billion.
The bid coverage ratio for this tenor dropped to 1.3228, lower than the 1.3258 last week when tenders amounted to PHP145.84 billion.
Tenders for the 14-day facility amounted to PHP225.55 billion.
The bid coverage ratio increased to 1.7350 from last week’s 1.4867 when bids were lower at PHP163.54 billion.
Bids for the longest-tenor facility totaled to PHP104.565 billion, more than double the PHP50-billion offer.
The bid coverage ratio rose to 2.0913 from last week’s 1.6458 when the PHP50-billion offer was met by PHP82.29 billion worth of tenders.
“The auction results continue to show that financial system liquidity remains ample. Going forward, the BSP will continue to be guided by its assessment of market developments and liquidity conditions in the calibration of its monetary operations,” BSP Deputy Governor Francisco Dakila Jr. said in a statement. (PNA)
