MANILA -- Undersubscription was registered for the Bangko Sentral ng Pilipinas’ (BSP) seven-day facility on Wednesday, but the tenor's average rate rose, unlike those of the other facilities.
Data released by the central bank showed that the rate of the seven-day term deposit facility (TDF) increased to 4.2508 percent from 4.2374 percent during the auction last November 20.
However, banks submitted a total of PHP62.442 billion worth of bids, lower than the PHP70 billion offer.
The tenor’s bid coverage ratio declined to 0.8920 from last week’s 1.2744 when the tenor was offered for PHP50 billion and received tenders amounting to PHP63.72 billion.
On the other hand, the average rate of the 14-day facility declined to 4.3424 percent from 4.3533 percent in the previous week’s auction.
Bid coverage ratio increased to 1.0795 percent from 0.9493 last week since the PHP50 billion offer this week was met by PHP53.975 billion worth of tenders, lower than the PHP47.465 billion worth of bids in the previous auction.
This tenor was offered for PHP50 billion last week.
The rate of the 28-day facility also slipped to 4.3324 percent from last week’s 4.3592 percent.
Bids totaled PHP63.911 billion, higher than the PHP60 billion offer.
However, bid coverage ratio went down to 1.0652 from last week’s 1.2157 since the difference of the bids from last week’s auction is relatively higher compared to this week.
During the November 20 auction, banks submitted PHP60.787 billion worth of tenders for the longest-tenor TDF, way higher than the PHP50 billion offer. (PNA)
