MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) continued to register mixed results despite demand remaining strong.
Data released by the central bank Wednesday showed the average rate of the seven-day facility rose to 1.8276 percent and the 14-day’s to 1.8479 percent, but the rate of the 28-day facility declined to 1.8518 percent.
These were at 1.8129 percent, 1.8424 percent, and 1.8613 percent during the auction last September 2.
BSP increased the offering for the seven-day TDF to PHP150 billion from last week’s PHP130 billion. This tenor was fully awarded.
Tenders for this week’s trading reached PHP197.394 billion, higher than the PHP171.969 billion last week. The bid coverage ratio dipped to 1.3160 from last week’s 1.3228.
Bids for the 14-day facility reached PHP250.278 billion, higher than the PHP160-billion offer. The auction committee made a full award.
The bid coverage ratio declined to 1.5642 from last week’s 1.7350 when this tenor was offered for PHP130 billion and bids reached PHP225.55 billion.
Tenders for the longest tenor facility reached PHP93.77 billion, nearly double the PHP50-billion offer. The auction committee made a full award.
The bid coverage ratio went down to 1.8754 from last week’s 2.0913 when this facility was offered for PHP50 billion and tenders amounted to PHP104.565 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said domestic liquidity remains ample as shown by the result of this week’s TDF auction.
“Moreover, the BSP’s calibration of monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
