MANILA -- Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said domestic liquidity remains high as proven by the bids offered for the central bank's term deposit facility (TDF) Wednesday.
Bids for the TDF totaled to PHP209.177 billion, higher than the PHP180 billion offering, BSP data showed.
In particular, the PHP30 billion offering for the seven-day facility was met by PHP37.876 billion bids. The auction committee made a full award.
The 28-day facility received PHP171.301 billion worth of bids, higher than the PHP150 billion offering. This was also awarded in full.
Tetangco said "auction results show there is still good demand for short dated TDF placements (seven days and 28 days) even as the bid to cover ratios are lower than last week's."
Bid to cover ratio for the seven-day TDF declined to 1.2625 this week from last week's 1.7023.
It is the same trend for the longer tenor facility with this week's figure at 1.1420 as against the previous week's 1.3603.
Tetangco, however, cited that "there continues to be oversubscription and the rates were still on a downtrend."
"The liquidity in the system remains healthy. Investors remain on the look out for short dated paper with good yields," he added. (PNA)
Source: Philippines News Agency