MANILA -- Term Deposit Facility (TDF) rates declined Wednesday on the heels of the reduction in the central bank’s key rates last week.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the average rate of the seven-day facility fell to 4.5695 percent from 4.6925 percent in last week’s auction.
It was undersubscribed at PHP17.486 billion against the PHP20 billion offer. The auction committee accepted all the bids.
The bid coverage ratio dropped to 0.8743 from last week’s 1.0265.
The rate of the 14-day facility slipped to 4.6013 percent from the previous auction’s 4.6961 percent.
It was fully awarded at PHP10 billion while bids reached PHP14.260 billion.
The bid coverage ratio dropped to 1.4260 from the past week’s 1.8010 since bids for this tenor last week was higher at PHP18.01 billion.
The BSP resumed the issuance of the longest TDF tenor on Wednesday.
The rate of the 29-day TDF, adjusted a day longer due to a holiday, stood at 4.6495 percent, lower than the 5.0987 percent during the auction last March 20.
The bid coverage ratio decreased to 1.1145 from 1.6078 last March 20. (PNA)
