Strong demand continues to result in the decline in the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rates.
Data released by the central bank showed that the average rate of the seven-day facility slipped to 1.7097 percent and the 14-day facility to 1.7817 percent.
These were at 1.7176 percent for the one-week tenor, and 1.8014 percent for the two-week facility during the auction last July 7.
The BSP increased the offering for the seven-day facility to PHP160 billion from last week’s PHP150 billion, but maintained the PHP390-billion offer for the two-week facility.
Both tenors were fully awarded.
Bids for the one-week facility reached PHP215.972 billion, resulting in a bid coverage ratio of 1.3498.
Tenders for the 14-day TDF amounted to PHP525.252 billion, bringing the bid coverage ratio to 1.3468.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said this week’s auction results “reflect market participants’ continued strong demand for the BSP’s term deposits amid 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
