BSP term deposit facility rates rise

MANILA – After several weeks of decline, average rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) increased Wednesday even as demand remained strong.

Data released by the central bank showed that the average rate of the seven-day facility increased to 1.7557 percent from 1.7538 percent during the auction last July 8.

This tenor was offered for PHP120 billion but bids reached PHP216.74 billion. The auction committee made a full award.

Bid coverage ratio stood at 1.8061, higher than the 1.7642 during the auction last week when this tenor was offered for PHP120 billion and received bids totaling PHP211.7 billion.

Rate of the 14-day TDF increased to 1.7564 percent from 1.7548 percent last week.

This was offered for PHP110 billion and was fully awarded. Total tenders amounted to PHP184.52 billion.

Bid coverage ratio declined to 1.6775 from last week’s 1.9138 when this tenor was offered for PHP90 billion and received tenders amounting to PHP172.245 billion.

The rate of the 28-day facility posted an uptick to 1.7585 percent from 1.7578 percent last week.

This was offered for PHP60 billion and attracted PHP109.13 billion worth of tenders. The auction committee made a full award.

Bid coverage ratio declined to 1.8188 from last week’s 2.4816 when this tenor was offered for PHP40 billion and received PHP99.262 billion worth of tenders.

In a statement, BSP Deputy Governor Francisco Dakila Jr. said the average interest rate of the seven-day facility rose by 0.19 basis points from last week’s level as it jumped by 0.16 basis points and 0.07 basis points for the 14-day and 28-day TDF, respectively.

He said the range of accepted bid rates for all three tenors continues to be narrow at 1.75 to 1.76 percent for the seven-day and 14-day TDF, and 1.75 to 1.77 percent for the longest-tenor facility.

“The auction results show that financial system liquidity remains ample even as more excess funds are absorbed gradually in the TDF’s longer maturities. For the week ahead, the BSP will continue to assess prevailing market and liquidity conditions in setting the volume and tenors of its TDF operations,” he added.