The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined on Wednesday due to strong demand.
The average rate of the seven-day facility slipped to 1.7176 percent and of the 14-day facility to 1.8014 percent.
These were at 1.7261 percent and 1.8114 percent for the seven- and 14-day TDF during the auction last June 30.
The BSP increased the offering for the one-week facility to PHP150 billion from last week’s PHP140 billion, and tenders amounted to PHP216.209 billion.
This tenor was fully awarded.
This resulted in a bid coverage ratio of 1.4414, lower than week-ago’ 1.4887 when bids reached PHP208.413 billion.
The two-week facility was still offered for PHP390 billion, and bids amounted to PHP555.083 billion.
This brought the bid coverage ratio to 1.4233, higher than the 1.1397 last week when tenders totaled to PHP444.488 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said results of this week’s TDF auction “show market participants’ continued interest in the BSP’s deposit facilities amid benign market conditions and sustained ample liquidity in the financial system.”
“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he added.
Source: Philippines News Agency
