MANILA – The demand for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) remained high, with both tenors still oversubscribed this week amid high liquidity in the economy.
The BSP lowered the offer volume for the seven-day TDF by PHP10 billion to PHP150 billion and tenders reached PHP200.545 billion.
The auction committee made a full award.
Bid coverage ratio stood at 1.3370, higher than the 1.1600 during the auction last Aug. 4 when total tenders reached PHP185.592 billion.
The average rate of the facility was almost unchanged at 1.7376 percent compared to last week’s 1.7375 percent.
Bids for the 14-day facility reached PHP473.006 billion, higher than the PHP400-billion offer, which was the same as last week’s offer. This tenor was also fully awarded.
Bid coverage ratio stood at 1.1825, higher than the previous week’s 1.1450 when total tenders amounted to PHP457.988 billion.
The average rate slipped to 1.7389 percent from last week’s 1.7448 percent.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said this week’s auction results reflect market participants’ continued strong demand for the BSP’s term deposit facilities amid sustained ample liquidity in the financial system.
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments for its monetary operations,” he added. (PNA)
