MANILA, Philippines — Cash-rich banks continued to swarm the liquidity absorption facilities of the Bangko Sentral ng Pilipinas (BSP) as monetary authorities start to gradually withdraw extraordinary measures aimed at softening the impact of the coronavirus disease 2019 or COVID-19 pandemic.
BSP Deputy Governor Francisco Dakila Jr. said the results at the term deposit facility (TDF) auction yesterday continued to show strong market interest for central bank’s deposit facilities as financial system liquidity further stabilize.
With excess funds, banks tendered P354.79 billion, more than 2.5 times the P140 billion offering.
Bids for the seven-day tenor amounted to P284.14 billion versus the lowered volume of P120 billion, while the resumption of the sale of the 14-day term deposits attracted P70.65 billion versus the P20-billion offer.
Dakila said the average interest rate for the seven-day term deposits was almost steady at 2.2507 percent, a slight decline of 0.026 basis point from last week’s 2.2510 percent, while the yield of the 14-day tenor plunged by 152.37 basis points to 2.252 percent from 3.7757 percent on March 11.