MANILA – The rate of the central bank’s term deposit facility (TDF) posted mixed results on Wednesday, with demand stronger for the shorter tenor facility.
Bangko Sentral ng Pilipinas (BSP) data show that the average rate of the seven-day facility dropped to 1.6745 percent from 1.6858 percent during the auction last February 16.
On the other hand, the rate of the 14-day TDF increased to 1.7882 percent from 1.7044 percent during the auction last week.
Tenders for the seven-day facility reached PHP259.007 billion, higher than the PHP190-billion offer. The auction committee made a full award. Bid coverage ratio stood at 1.3632.
BSP’s auction committee made a full award of PHP310 billion for the two-week facility from total tenders of PHP312.041 billion. Bid coverage ratio was at 1.0066.
BSP Deputy Governor Francisco Dakila Jr. has repeatedly traced the demand for the TDF to the high liquidity situation in the country, which also affects the direction of TDF yields.
Dakila said the central bank’s “monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments.” (PNA)
