MANILA -- Strong demand for term deposit facility (TDF) on high excess liquidity resulted in across-the-board drop of its interest rates Wednesday.
Data released by the Bangko Sentral ng Pilipinas (BSP) Wednesday showed that rate of the seven-day facility dropped to 4.3486 percent from last week’s 4.4141 percent.
This tenor was offered for PHP10 billion and tenders reached PHP23.7 billion.
Bid coverage ratio increased to 2.3700 from last week's 2.4905.
Rate of the 14-day facility declined to 4.3995 percent from 4.4352 during the auction last September 4.
Tenders reached PHP34.454 billion, higher than the PHP20-billion offer.
Bid coverage ratio declined to 1.7227 from last week's 2.2980 as last week's PHP10-billion offer was met by PHP22.98-billion bids.
Average rate of the 28-day facility went down to 4.4907 percent from last week’s 4.4950 percent.
Tenders totaled to PHP35.241 billion, higher than the PHP20-billion offer. Bid coverage ratio improved to 1.7621 from last week's 1.4085.
Total offering in this week’s auction was increased to PHP50 billion from last week’s PHP40 billion.
BSP Deputy Governor Francisco Dakila Jr. attributed this to “anticipation of higher excess liquidity to be siphoned from the financial system as a result of funds released from the deposits of the National Government with the BSP.” (PNA)
