Manila: The average rate of the Bangko Sentral ng Pilipinas' seven-day term deposit facility (TDF) declined on Wednesday, data released by the central bank showed. The rate fell by 1.29 basis points to 4.4794 percent from 4.4923 percent in the Feb. 11 auction.

According to Philippines News Agency, the BSP offered PHP90 billion for the one-week facility, which is lower than last week's PHP110 billion. Bids reached PHP124.9 billion, resulting in a bid-to-cover ratio of 1.39. The auction committee fully awarded the offer, with accepted yields ranging from 4.4500 percent to 4.4950 percent, which is narrower than last week's range of 4.4500 percent to 4.5050 percent.

Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the drop to expectations of a policy rate cut during the meeting of the Monetary Board on Thursday. He noted, 'The BSP TDF average auction yield (went down) again slightly after local market sentiment (was) also recently supported after S and P reiterated a possible credit rating upgrade for the Philippines (from BBB+ to A-; amid positive outlook since November 26, 2024 or more than a year already), despite the political noise in recent months.'