BSP’s term facility rates end mixed, strong demand remains

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Credit: Read the original article from PNA Latest News.

MANILA – Both the seven- and 14-day term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) were oversubscribed Wednesday but their interest rates ended mixed.

Data released by the central bank showed that the average rate of the seven-day facility rose to 1.9720 percent from 1.9540 percent during the auction last Nov. 4.

The rate of the 14-day TDF declined to 2.0138 percent from last week’s 2.0454 percent.

The BSP offered the shortest TDF for PHP180 billion and bids reached PHP225.195 billion. The auction committee made a full award.

The bid coverage ratio rose to 1.2511 from last week’s 0.8592 when the tenor was offered for PHP220 billion and tenders amounted to PHP189.03 billion.

Tenders for the 14-day facility reached PHP397.241 billion, higher than the PHP300-billion offer.

The auction committee also fully awarded this tenor.

Its bid coverage ratio stood at 1.3241, lower than last week’s 1.4998 when it was offered for PHP270 billion and bids reached PHP404.955 billion.

In a statement, BSP Deputy Governor Francisco Dakila Jr. said domestic liquidity remains high as proven by this week’s TDF auction.

Dakila also cited the preference for the longer-tenor facility or the two-week TDF.

“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added. (PNA)

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