MANILA – Interest rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) posted mixed results anew, but demand remained strong, thus the continued oversubscription.
Data released by the central bank on Wednesday showed that the average rate of the seven-day facility, which is among the BSP’s excess liquidity mopping tools, rose to 1.7413 percent from 1.7227 percent during the auction last January 26.
On the other hand, the weighted average interest rate of the 14-day facility declined to 1.6899 percent from the previous auction’s 1.6972 percent last week.
The BSP tweaked the offer volume for the TDF but the auction committee made full awards for both tenors.
The BSP cut the offer volume for the one-week facility to PHP220 billion from last week’s PHP240 billion.
Total tenders reached PHP240.097 billion, resulting in a bid coverage ratio of 1.0004.
Offer volume for the 14-day TDF was hiked to PHP330 billion from the previous week’s PHP395.15 billion.
Bid coverage ratio stood at 1.1974.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said accepted yields for the one-week facility shifted lower at a range of 1.6100-2.1900 percent while those of the two-week TDF narrowed to 1.6050-1.7100 percent.
“The TDF auction results show continued normalization in the financial system amid ample liquidity,” he said, citing that “short-term market interest rates remain low.”
He added the central bank’s “monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments.” (PNA)
