MANILA -- Rates of the Bangko Sentral ng Pilipinas' (BSP) term facilities rose across-the-board Wednesday despite the undersubscription in two of the three tenors.
Data released by the central bank showed that rate of the seven-day facility increased to 4.4852 percent from 4.4597 percent during the auction last August 22.
Tenders for this tenor were short of the PHP20-billion offer after it only amounted to PHP19.228 billion. The auction committee accepted all bids.
Bid coverage ratio, however, improved to 0.9614 from last week's 0.8955.
Also, average rate of the 14-day facility increased to 4.5055 percent from the previous week's 4.4938 percent.
Banks submitted tenders amounting to PHP24.322 billion, higher than the PHP20-billion offer. The auction committee made a full award.
Bid coverage ratio posted an uptick to 1.2161 from week-ago's 0.8685.
Average rate of the 28-day TDF went up to 4.4832 percent from the previous week's 4.4613 percent.
Bid coverage ratio declined to 0.8301 from the past week's 1.3706.
This, after the PHP40-billion offer was met by only PHP33.203 billion bids, which the auction committee fully accepted.
In a statement, BSP Deputy Governor Francisco Dakila Jr. traced the undersubscription to some TDF tenors to the “lower liquidity in the financial system to be siphoned due to higher deposits of the national government with the BSP.”
“At the same time, the undersubscription may be attributed to banks funding requirements for scheduled loan releases, client withdrawals, as well as month-end requirements,” he said.
“Nonetheless, total bids received in today's auction were within the BSP's liquidity forecast for the week,” he added. (PNA)
