MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) fell Wednesday amidst the strong demand.
Data released by the central bank showed an average rate of 1.7218 percent for the seven-day facility, down from 1.7292 percent during the auction last Dec. 2.
This tenor was offered for PHP170 billion and was fully awarded. Tenders reached PHP243.555 billion.
The bid coverage ratio rose to 1.4327 from 1.1610 last week when this tenor was offered for PHP180 billion, and bids amounted to PHP208.985 billion.
The rate of the 14-day TDF decreased to 1.7191 percent from last week’s 1.7292 percent.
This facility was offered for PHP320 billion and bids totaled PHP401.251 billion. The auction committee made a full award.
The bid coverage ratio rose to 1.2539 from last week’s 1.1610. This tenor was offered for PHP180 billion last week and tenders amounted to PHP208.985 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “TDF auction results continue to suggest that financial liquidity remains ample even as market participants’ preference shifted to the shorter tenor amid the coming holidays”.
“Going forward, the BSP’s monetary operations will continue to be guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
