MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) inched up on Wednesday due to high demand even as volume offering for the 14-day facility was increased.
Data released by the central bank showed that the average rate of the seven-day TDF rose to 1.7582 percent and the 14-day TDF to 1.7950 percent.
These were at 1.7200 percent for the one-week TDF and 1.7860 percent during the auction last June 2.
The BSP kept the offering for the seven-day facility at PHP150 billion but increased the volume for the 14-day facility by PHP10 billion to PHP370 billion.
Bids for the shorter-dated facility amounted to PHP140.165 billion, resulting in a bid coverage ratio of 0.9344, lower than the previous week’s 1.0570 when tenders amounted to PHP158.544 billion.
The auction committee accepted all the tenders for this tenor this week.
On the other hand, tenders for the 14-day TDF reached PHP458.961 billion.
The auction committee made a full award.
Bid coverage ratio stood at 1.2404, higher than the previous week’s 1.1502 when bids reached PHP414.061 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. attributed the lower bids in the seven-day TDF “to market participants’ preference for the longer tenor amid their search for yields.”
“Nevertheless, market conditions remain normal, supported by the sustained ample liquidity in the financial system,” he said.
He added the central bank “will continue its assessment of the latest liquidity conditions and market developments for its monetary operations.” (PNA)
Credit belongs to : www.pna.gov.ph