MANILA – Interest rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) slipped anew Wednesday due to strong demand.
Data released by the central bank showed the average rate of the seven-day TDF went down to 1.6470 percent from 1.6735 percent during the auction last Jan. 6.
Similarly, the rate of the 14-day facility decreased to 1.6673 percent from 1.6819 percent last week.
The BSP increased the offering this week to PHP550 billion from last week’s PHP530 billion but oversubscription remains thus, the full award for both tenors.
Specifically, the one-week facility was offered for PHP200 billion from last week’s PHP190 billion.
Bids totaled to PHP305.273 billion, resulting in a bid coverage ratio of 1.5264.
Also, tenders for the 14-day TDF reached PHP421.342 billion, higher than the PHP350-billion offer. Bid coverage ratio stood at 1.4305.
“The results in today’s TDF auction continue to reflect ample liquidity in the financial system,” BSP Deputy Governor Francisco Dakila Jr. said in a statement.
He added the central bank’s “monetary operations will remain guided by its assessment of liquidity conditions and market developments.” (PNA)