MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) seven-day term deposit facility (TDF) fell anew this week as demand remains strong.
It slipped to 2.2654 percent during the auction Wednesday from 2.3133 percent last week, data from the central bank showed.
The BSP offered this facility for PHP70 billion and made a full award after bids totaled to PHP181.221 billion.
Bid coverage ratio stood at 2.5889, lower than the 2.7432 during the auction last week.
Last week, this facility was offered for PHP50 billion and tenders amounted to PHP137.159 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said the interest rate of the facility fell 4.79 basis points compared to last week’s level.
He attributed the large volume of bids in this week’s TDF auction to “ample liquidity in the financial system.”
“The BSP will continue to be guided by its assessment of prevailing market and liquidity conditions in the financial system in deciding on the size and maturities of its TDF operations,” he added.