MANILA – The rates of both the seven and 14-day term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) declined this week on strong demand and high liquidity situation.
Data released by the central bank showed that the average rate of the one-week facility slipped to 1.7376 percent and the two-week facility to 1.8085 percent.
These were at 1.7464 percent and 1.8118 percent for the seven- and 14-day facilities during the auction last June 16.
Both tenors were oversubscribed, although the BSP slashed the 14-day offering to PHP380 billion from last week’s PHP390 billion, while the seven-day volume offering was kept at PHP140 billion.
Bids for the seven-day facility reached PHP220.938 billion, resulting in a bid coverage ratio of 1.5781.
Tenders for the two-week facility amounted to PHP424.404 billion and this brought the bid coverage ratio to 1.1169.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “results of the TDF auction show continued market participants’ interest in the BSP’s deposit facilities amid normal market condition(s) as financial system liquidity remains ample.”
“Going forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity condition and market developments,” he added. (PNA)
