MANILA – The average rates of all Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) tenors increased Wednesday as demand remained high.
The rate of the seven-day facility increased to 1.8431 percent, the 14-day to 1.8492 percent, and the 28-day to 1.8445 percent.
These were at 1.8377 percent, 1.8485 percent, and 1.8426 percent for the seven-, 14-, and 28-day facilities during the auction last Sept. 30.
All tenors were over- subscribed but bid coverage ratio of the shortest tenor facility declined to 1.1697 from last week’s 1.3974 after this week’s PHP200-billion offering was met with tenders amounting to PHP233.945 billion.
Last week, this tenor was offered for PHP180 billion and bids amounted to PHP251.53 billion.
Bid coverage ratio of the two-week facility rose to 1.5288 from last week’s 1.4857 after bids totaled to PHP336.33 billion, higher than the PHP200-billion offer.
This tenor was offered for PHP200 billion in the previous auction and tenders reached PHP297.14 billion.
Meanwhile, bid coverage ratio of the 28-day facility went down to 1.7952 from last week’s 1.9302 after tenders this week totaled PHP107.71 billion, higher than the PHP60-billion offer.
Tenders for this tenor in last week’s auction reached PHP96.51 billion, almost twice the PHP50-billion offer.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said domestic liquidity continues to remain high as shown by the TDF auction results.
“Looking ahead, the BSP will remain guided by its assessment of liquidity conditions and market developments in the conduct of its monetary operations,” he added. (PNA)
