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MANILA – Both Bangko Sentral ng Pilipinas (BSP) seven- and 14-day term deposit facility (TDF) were oversubscribed on Wednesday, but their interest rates ended up mixed.
Data released by the central bank showed that the average rate on the seven-day line of credit rose to 1.9720 percent from 1.9540 percent during the November 4 auction.
The 14-day TDF rate dropped to 2.0138 percent from 2.0454 percent last week.
The BSP offered the shortest TDF for PHP180 billion and the offers reached PHP225.195 billion. The auction committee made a full prize.
The bid coverage ratio increased to 1.2511 from 0.8592 last week, when the term was offered for PHP220 billion and bids amounted to PHP189.03 billion.
Bids for the 14-day facility reached PHP 397,241 million, more than the offer of PHP 300 billion.
The auction committee also granted this tenor in full.
Its offer coverage ratio stood at 1.3241, lower than last week’s 1.4998 when it was offered for PHP270 billion and offers reached PHP404.955 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said that internal liquidity remains high, as this week’s TDF auction demonstrated.
Dakila also cited a preference for the longer term facility or the two week PTO.
“Going forward, the BSP’s monetary operations will continue to be guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
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