MANILA – The high domestic liquidity situation in the Philippines continues to drive the decline in Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rates.
Data released by the central bank Wednesday showed the drop of the seven-day TDF rate to 1.6325 percent and the 14-day’s to 1.6534 percent.
These were at 1.6470 percent and 1.6673 percent during the auction last January 13.
BSP again increased the offering for both tenors but these were both oversubscribed and fully awarded.
BSP offered the shortest TDF tenor for PHP210 billion, higher than last week’s PHP200 billion offer. Tenders reached PHP291.491 billion and bid coverage ratio stood at 1.3881.
The two-week TDF was offered for PHP360 billion, higher than last week’s PHP350 billion. Bids totaled to PHP465.22 billion, resulting to a bid coverage ratio stood of 1.2923.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said “market participants’ continued strong interest in the TDF show that liquidity in the financial system is ample amid continued foreign exchange inflows and the normalization of cash demand after the holidays.”
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of liquidity conditions and market developments,” he added. (PNA)
