MANILA – High liquidity situation in the domestic economy resulted in another decline in the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rates.
The average rate of the seven-day facility fell to 1.7314 percent and the 14-day facility’s rate to 1.7486 percent, data released by the central bank on Wednesday showed.
These were at 1.7411 percent for the one-week tenor and 1.7601 percent for the two-week TDF during the auction last April 28.
Both tenors were fully awarded and oversubscribed.
The BSP offered the seven-day facility for PHP150 billion and tenders reached PHP157.385 billion.
The two-week facility was offered for PHP360 billion and bids reached PHP425.677 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said this week’s TDF “auction results continue to support the view that market conditions remain normal amid ample liquidity in the financial system.”
“Moving forward, the BSP’s monetary operations will continue to be guided by its latest assessment of prevailing liquidity conditions and market developments,” he added. (PNA)
