The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose on Wednesday, which a ranking central bank executive said was in line with the rising interest rates.
Data released by the BSP showed that the average rate of the seven-day facility increased to 2.6647 percent and the 14-day’s to 2.7102 percent.
These were previously at 2.5472 percent for the one-week facility and 2.6754 percent for the two-week facility.
The BSP kept the offer volume for the one-week facility at PHP150 billion and the two-week facility at PHP140 billion.
Total tenders for the seven-day facility reached PHP167.585 billion, resulting in a bid coverage ratio of 1.1172.
Bids for the 14-day TDF amounted to PHP163.05 billion, bringing the bid coverage ratio to 1.1646.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said accepted yields shifted in this week’s auction.
Dakila said accepted yields for the seven-day facility, however, narrowed to between 2.5000-2.7500 percent but those of the 14-day TDF widened between 2.5000-2.7999 percent.
“The results of the TDF auction remain consistent with normal market conditions amid continued ample liquidity in the financial system. Going forward, 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