Demand for BSP’s term deposit facility increases

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The Bangko Sentral ng Pilipinas (BSP) retained its term deposit facility (TDF) volume offering at P160 billion, with the same allocation of P80 billion each for the 6-day and 13-day tenors.

Total tenders increased to P164.441 billion Thursday from P105.851 billion. The figures are within the BSP’s expected volume range, and resulted in bid-to-cover ratios of 1.07x for the 6-day TDF and 0.99x for 13-day TDF.

The BSP awarded in full its offering for the 6-day tenor and accepted the P78.940-billion total tenders for the 13-day tenor.

The respective weighted average interest rates for the 6-day and 13-day tenors fell by 19.96 basis points (bps) and 19.63 bps to 6.3123 percent and 6.3477 percent, respective.

It said this reflects the partial pass-through of the 25-basis-point reduction in the policy rate last week.

Meanwhile, the range of accepted yields widened to 6.2400 to 6.5000 percent for the 6-day TDF and 6.2500 to 6.5500 percent for the 13-day TDF.

The BSP said its monetary operations would continue to be guided by its assessment of prevailing liquidity conditions and market developments.

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