MANILA – The rate of the Bangko Sentral ng Pilipinas (BSP) term deposit facility (TDF) rose Friday as investors continued to price in the elevated inflation rate.
The average interest of the 28-day facility increased to 1.9630 percent from last week’s 1.9444 percent.
The BSP offered the debt securities for PHP70 billion and tenders reached PHP96.2 billion. The auction committee made a full award.
The bid coverage ratio stood at 1.3743.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said auction results “continue to reflect market participants’ factoring in of higher inflation expectations in their search for yields.”
“Nonetheless, financial system liquidity remains ample. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity condition and market developments,” he added. (PNA)
