MANILA – The high liquidity situation in the country continues to result in the drop in Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rates.
Data released by the central bank Wednesday showed that the average rate of the seven-day facility fell to 1.7541 percent and the 14-day facility to 1.7860 percent.
These were at 1.7737 percent and 1.8097 percent for the seven-day and 14-day TDF, respectively, during the auction last April 14.
Both tenors were fully awarded due to oversubscription.
Offer volume this week is also the same as last week.
The BSP offered the shorter-dated TDF for PHP140 billion and bids amounted to PHP179.141 billion.
It offered the 14-day TDF for PHP350 billion and tenders reached PHP403.632 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said this week’s TDF auction still shows there is “normal market conditions amid ample liquidity in the financial system.”
“Looking ahead, the BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” he added. (PNA)
