MANILA – The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) dipped further as preference ahead of the holidays went for the shorter-dated facility.
Data released by the central bank showed that the average rate of the seven-day TDF declined to 1.7046 percent, and the 13-day facility to 1.7163 percent.
These were at 1.7218 percent and 1.7191 percent during the auction last Dec. 9.
The BSP offered the shorter-dated TDF for PHP170 billion, and bids reached PHP235.87 billion. This facility was fully awarded.
The bid coverage ratio declined to 1.3875 from last week’s 1.4327 when the tenor was offered for PHP170 billion and bids amounted to PHP243.555 billion.
Bids for the longer tenor facility reached PHP334.459 billion, lower than the PHP340-billion offer. The auction committee accepted all the bids.
The bid coverage ratio declined to 0.9837 from the previous week’s 1.2539 when this tenor was offered for PHP320 billion and tenders totaled PHP401.251 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said the “results in today’s auction reflect market participant’s continued preference for the shorter tenor in view of the holidays.”
He said domestic liquidity “remains ample.”
“The BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions moving forward,” he added. (PNA)
