MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) continue to post mixed results even as domestic liquidity remains high.
Rates of the seven-day facility rose to 1.8377 percent but those for the 14-day and 28-day facilities declined to 1.8460 percent and 1.8409 percent, respectively.
These facilities were at 1.8276 percent, 1.8479 percent, and 1.8518 percent, respectively, during the auction last Sept. 9.
The BSP hiked the offering for the shortest TDF tenor to PHP160 billion from last week’s PHP150 billion.
Tenders reached PHP212.569 billion, resulting in the rise in the bid coverage ratio to 1.3286 from last week’s 1.3160 when tenders amounted to PHP197.394 billion.
Bids for the 14-day facility totaled to PHP265.685 billion, higher than the PHP170-billion offer.
Bid coverage ratio declined to 1.5629 from last week’s 1.5642 when this tenor was offered for PHP160 billion and received tenders amounting to PHP250.278 billion.
Tenders for the longest tenor TDF reached PHP49.73 billion, more than double the PHP20-billion offer.
Bid coverage ratio rose to 2.4865 from last week’s 1.8754 when this tenor was offered for PHP50 billion and bids totaled to PHP93.77 billion.
BSP Deputy Governor Francisco Dakila Jr. reiterated that results of the TDF auction “continue to support the view that liquidity in the financial system remains ample.”
“Looking ahead, the BSP’s calibration of its monetary operations will continue to be guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
