MANILA – The rates of Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined Wednesday as demand remained strong.
The average rate of the seven-day facility went down to 1.7842 percent and the 14-day’s to 1.8431 percent.
These were at 1.8280 percent for the seven-day tenor and 1.8727 percent for the 14-day TDF during the auction last March 31. Both tenors were fully awarded.
The BSP offered the shorter-dated TDF for PHP140 billion this week and tenders amounted to PHP191.73 billion. This resulted in a bid coverage ratio of 1.3695.
Bids for the two-week facility reached PHP459.384 billion, higher than the PHP350-billion offer.
Bid coverage ratio stood at 1.3125.
BSP Deputy Governor Francisco Dakila Jr. said this week’s “TDF auction results continue to support the view that financial system liquidity remains ample and continues to normalize, coming off the retail treasury bonds (RTBs) issuance and the Lenten long weekend.”
“Looking ahead, the BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” he added in a statement. (PNA)