MANILA – The Term Deposit Facility (TDF) auction on Wednesday was undersubscribed but rates increased across-the-board.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the average rate of the seven-day facility improved to 4.5629 percent from 4.5640 percent during the auction last July 17.
The BSP offered the tenor for PHP30 billion but banks submitted only PHP27.755 billion worth of bids, which the auction committee fully accepted.
This resulted in a drop in the tenor’s bid coverage ratio to 0.9252 from last week’s 1.2498.
Also, the average rate of the 14-day facility declined to 4.6277 percent from last week’s 4.6148 percent.
However, its bid coverage ratio slipped to 0.5592 from last week’s 1.0297 after banks only submitted PHP16.776 billion worth of tenders, lower than the PHP30-billion offer. The auction committee made the award based on the total bids.
Last week, the central bank offered the facility for PHP30 billion and bids amounted to PHP30.89 billion.
The rate of the 29-day facility, a day longer than the normal tenor due to a holiday in August, the Ninoy Aquino Day on August 21, inched to 4.6495 percent from 4.6492 percent last week.
Its bid coverage ratio also declined after ending at 1.0850 from last week’s 1.0263.
The said tenor was offered for PHP20 billion and was fully awarded. Banks submitted PHP21.7 billion worth of bids. (PNA)
