MANILA -- The Bangko Sentral ng Pilipinas’ (BSP) term facilities were mostly undersubscribed during the auction on Thursday even while the rates were mostly higher.
Data released by the central bank showed that the 13-day and 27-day facilities, both a day short of their original tenor due to the Independence Day holiday Wednesday, received tenders that are below the offer volume and only the six-day facility received higher-than-offered bids.
The 13-day facility was offered for PHP10 billion but tenders amounted to only PHP7.418 billion, which is still higher than the PHP6.665 billion tenders last week.
This resulted in the rise of the bid coverage ratio to 0.7418 from the previous auction’s 0.6665.
Also, its rates improved to 4.6562 percent from last week’s 4.6048 percent.
Relatively, bids for the 27-day facility amounted to PHP6.774 billion, lower than the PHP10-billion offer this week and last week’s PHP6.054 billion.
The bid coverage ratio rose to 0.6774 from week-ago’s 0.6054. Its average rate jumped to 4.7848 percent from the previous week’s 4.6602 percent.
On the other hand, bids for the shortest tenor facility amounted to PHP10.77 billion, higher than the PHP10 billion offer. Last week, this tenor was undersubscribed after banks submitted PHP18.895 billion worth of tenders against the PHP20-billion offer.
The bid coverage ratio also improved after it rose to 1.0770 from week-ago’s 0.9448.
The average rate, meanwhile, dropped to 4.6661 percent from last week’s 4.6669 percent.
Monetary officials said the fluctuation of bids for the facility was expected, tracing the drop this week to the holiday.
The officials previously said banks prefer to hold on to their funds during holidays, to be able to cater to their clients’ needs during such non-working days. (PNA)
