MANILA – The Bangko Sentral ng Pilipinas (BSP) upsized further the offering for the term deposit facility (TDF) Wednesday as demand remained strong, thus the facility’s interest rates declined anew.
Data released by the BSP showed that the rate of the seven-day TDF declined to 1.6220 percent from 1.6325 percent during the auction last Jan. 20.
The rate of the 14-day facility slipped to 1.6400 percent from last week’s 1.6534 percent.
The BSP offered the shorter-dated TDF for PHP230 billion this week and tenders reached PHP272.499 billion.
This resulted in a bid coverage ratio of 1.1848 from last week’s 1.3881 when the facility was offered for PHP210 billion and bids totaled to PHP291.491 billion.
The 14-day facility was offered for PHP380 billion, up from last week’s PHP360 billion.
Tenders this week amounted to PHP432.269 billion.
Bid coverage ratio stood at 1.1376, lower than the 1.2923 last week when bids totaled to PHP465.22 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “sustained strong demand for the TDF reflects ample liquidity in the financial system as cash holdings continue to normalize from the previous month’s holidays.”
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of liquidity conditions and market developments,” he added. (PNA)
