MANILA – The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility declined anew as demand remained high as shown by the oversubscription amid the higher offer volume.
Data released by the central bank showed that the average rate of the seven-day facility declined to 1.9177 percent and the 14-day facility to 1.9490 percent.
These were at 1.9325 percent for the seven-day TDF and 1.9806 percent for the 14-day facility during the auction last March 30.
The BSP hiked the offer volume by PHP10 billion for both tenors to PHP170 billion for the one-week facility and to PHP240 billion for the two-week facility. Both were fully awarded.
Total tenders for the seven-day TDF reached PHP189.303 billion, resulting in a bid coverage ratio of 1.1135.
Bids for the 14-day facility amounted to PHP290.742 billion, bringing the bid coverage ratio to 1.2114.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “accepted yields in the seven-day TDF remained low but widened to a range of 1.8500-1.9900 percent” while “accepted yields in the 14-day TDF shifted lower but widened to a range of 1.8250-1.9750 percent.”
Dakila said results of this week’s TDF auction “reflect continued ample liquidity in the financial system even as the tax deadline and Holy Week approach.”
“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
