MANILA – The interest rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose anew Wednesday due to strong demand despite the 28-day facility still not offered.
Data released by the central bank showed that the average yield of the seven-day facility rose to 1.9373 percent from last week’s 1.8813 percent.
Rate of the 14-day TDF increased to 2.0337 percent from 1.9051 percent during the auction last Oct. 21.
The BSP kept the offer volume for the seven days TDF at PHP220 billion, and the 14 days at PHP270 billion. Both were fully awarded.
Tenders for the shortest tenor facility reached PHP227.445 billion.
Its bid coverage ratio increased to 1.0338 from last week’s 1.0271 when bids totaled to PHP225.955 billion.
Tenders for the 14-day TDF amounted to PHP325.525 billion, higher than last week’s PHP292.925 billion.
This resulted in the rise of the bid coverage ratio to 1.2056 from last week’s 1.0849.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “auction results show that financial liquidity remains ample ahead of the All Souls Day holiday (Nov. 2)”.
“Moving forward, the BSP’s monetary operations will continue to be conducted based on its assessment of market developments and liquidity conditions,” he added. (PNA)
