MANILA -- Term deposit facility (TDF) rates posted mixed results on Thursday due to weaker demand as shown by the lower tenders compared to the previous week’s auction.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the average rate of the six-day facility, a day shorter than its regular tenor due to the holiday on August 26, rose to 4.4597 percent from 4.4389 percent during the auction last August 14.
This tenor was undersubscribed after banks submitted PHP35.82 billion worth of bids, lower than the PHP40 billion offer, as well as the PHP51.252 billion tenders last week.
The auction committee accepted all bids but the tenor’s bid coverage ratio slipped to 0.8955 from 1.2813 in the previous auction.
Rate of the 13-day facility, also a day shorter, averaged at 4.4938 percent, higher than the 4.4905 percent last week.
It was offered for PHP30 billion but banks submitted PHP26.055 billion worth of bids, lower than the PHP40.747 billion last week. The auction committee fully accepted all bids.
Bid coverage ratio declined to 0.8685 from 1.3582 last week.
Average rate of the 27-day facility, also a day shorter, went down to 4.4613 percent from 4.4961 percent last week.
Bid coverage ratio decreased to 1.3706 from 1.5047 last week after bids reached PHP41.119 billion, higher than the PHP30 billion offer but lower than the PHP45.142 billion tenders last week. The auction committee made a full award.
In a statement, BSP Deputy Governor Francisco Dakila Jr. attributed the lower tenders for the six and 13-day facilities and the offered tenders for the longest tenor TDF to the “banks' appetite for longer-tenored term deposits.”
“At the same time, the results of the auction indicated (the) banks' preference to hold on to their cash in view of the long weekend and month-end liquidity requirements,” he said.
“Nonetheless, the total tenders received across all TDF tenors at about PHP103 billion were in line with the BSP's liquidity forecast for the week,” he added. (PNA)
