MANILA -- Rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) registered mixed results Wednesday due to undersubscription and demand for higher yield.
Rate of the seven-day facility rose to 4.3589 percent from 4.3323 percent during the auction last September 18.
The central bank offered this tenor for PHP30 billion but banks submitted PHP26.616 billion worth of tenders. Bid coverage ratio declined to 0.8872 from 1.6299 previously.
Also, average rate of the 14-day facility improved to 4.4391 percent from week-ago’s 4.4139 percent.
Banks submitted tenders amounting to PHP23.07 billion, lower than the PHP30-billion offer.
The auction committee fully accepted all the bids. Bid coverage ratio went down to 0.7690 from last week’s 1.0438.
On the other hand, rate of the 28-day facility declined to 4.4577 percent from 4.4578 percent in the previous week’s auction.
It was offered for PHP30 billion and tenders amounted to PHP24.779 billion, which the auction committee fully accepted.
Bid coverage ratio also went down to 0.8260 from the previous auction’s 1.0841. (PNA)
