MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) ended mixed Wednesday, with preference registered for the longer-tenor facility.
Data released by the central bank showed that average rate of the seven-day TDF rose to 1.9813 percent from last week’s 1.9720 percent but rate of the 14-day facility declined to 1.9984 percent from the previous auction’s 2.0138 percent.
BSP offered the short term TDF for PHP190 billion and tenders reached PHP230.855 billion. The auction committee made a full award.
Bid coverage ratio declined to 1.2150 from last week’s 1.2511 when this tenor was offered for PHP180 billion and bids amounted to PHP225.195 billion.
Tenders for the 14-day facility amounted to PHP414.73 billion, higher than the PHP310 billion offer. This tenor was also fully awarded.
Bid coverage ratio rose to 1.3378 from 1.3241 a week ago when this facility was offered for PHP300 billion and bids totaled to PHP397.241 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said “TDF auction results show that market participants continue to prefer the longer tenor which is a further reflection that liquidity in the financial system remains adequate.”
“The BSP’s monetary operations will continue to be guided by its assessment of market developments and liquidity conditions going forward,” he added. (PNA)
