The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined further Wednesday as domestic liquidity remained ample.
BSP data show that the average rate of the seven-day facility fell to 1.7737 percent from last week’s 1.7842 percent.
Average rate of the 14-day TDF slipped to 1.8097 percent from 1.8431 percent during the auction last April 7.
The auction committee fully awarded both tenors as these were also oversubscribed.
The BSP again offered the shorter-dated facility for PHP140 billion, and tenders reached PHP181.415 billion.
Bids for the 14-day tenor amounted to PHP453.364 billion, higher than the PHP350-billion offer, which is also similar to last week’s auction.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said results of this week’s auction “reflects the continued normalization in market participants’ sentiment on liquidity conditions, amid ample supply in the financial system.”
“Moving forward, the BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” he added. (PNA)