MANILA – Demand for Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) remains high, resulting in the upticks in the interest rate but preference for the shorter tenor weakened.
Data released by the central bank showed that the average rate of the seven-day facility rose to 1.9540 percent from last week’s 1.9373 percent.
This tenor was undersubscribed after bids reached PHP189.03 billion, lower than the PHP220-billion offer.
Bid coverage ratio declined to 0.8592 from the previous week’s 1.0338 when this tenor was offered for PHP220 billion, and tenders amounted to PHP227.445 billion.
The rate of the 14-day TDF rose to 2.0454 percent from week-ago’s 2.0337 percent.
Tenders surpassed the PHP270-billion offer after it reached PHP404.955 billion.
The auction committee made a full award.
Bid coverage ratio rose to 1.4998 from week-ago’s 1.2056.
The BSP still did not offer the 28-day TDF.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “overall results of the TDF auction show that liquidity in the financial system remains ample”.
“The BSP will remain guided by its assessment of market developments and liquidity conditions in the conduct of its monetary operations going forward,” he added. (PNA)
