MANILA – The average rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) posted mixed results Wednesday, but both tenors were oversubscribed despite the higher offer volume this week.
Data released by the central bank showed that the average rate of the seven-day facility, which is among the central bank’s excess liquidity mopping tools, slipped to 1.7046.
The rate of the 14-day TDF rose to 1.7439 percent.
These were at 1.7083 percent for the seven-day TDF and 1.7423 percent for the 14-day facility during the auction last September 15.
The BSP hiked the offering for the seven-day facility this week to PHP160 billion from last week’s PHP150 billion.
Tenders amounted to PHP217.425 billion, resulting in a bid coverage ratio of 1.3589.
The 14-day facility was again offered for PHP360 billion, and tenders amounted to PHP402.804 billion. Bid coverage ratio stood at 1.1189.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said the level of bids for this week’s TDF auction is “well within the BSP’s expected volume range.”
“The results of the TDF auction remain in line with stable market conditions, supported by sustained ample liquidity in the financial system. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
