MANILA – The rate of the Bangko Sentral ng Pilipinas’ (BSP) seven-day term deposit facility (TDF) slipped anew on Wednesday but it was steady for the 14-day facility even as both tenors attracted huge demand.
Data released by the central bank showed that the average rate of the shorter tenor TDF declined to 1.7261 percent from 1.7376 percent during the auction last June 23.
The rate of the 14-day facility moved to 1.8114 percent, sideways from the 1.8085 percent in the previous auction.
The BSP kept the offer volume for the seven-day TDF at PHP140 billion and tenders for this week reached PHP208.413 billion.
This resulted in a bid coverage ratio of 1.4887, lower than last week’s 1.5781 when bids reached PHP220.938 billion.
Tenders for the 14-day facility reached PHP444.488 billion, higher than the PHP390-billion offer, which in turn was higher by PHP10 billion against last week’s offer.
Bid coverage ratio is higher this week at 1.1397 than last week’s 1.1169 when total tenders amounted to PHP424.404 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said this week’s auction results “continue to show market participants’ search for yield in the longer tenor amid ample liquidity in the financial system.”
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity condition and market developments,” he added. (PNA)