MANILA -- The rates of Bangko Sentral ng Pilipinas’ (BSP) term facilities ended mixed anew on Wednesday, with undersubscription registered in the longest-tenor facilities.
The rate of the seven-day term deposit facility (TDF) rose to 4.3040 percent from 4.2834 percent during the auction last December 4.
The central bank offered this facility for PHP60 billion and received PHP66.835 billion worth of tenders. The auction committee made a full award.
Last week, this tenor was offered for PHP60 billion, and got PHP56.572 billion worth of bids.
Its bid coverage ratio improved to 1.1139 from 0.9429 in the previous auction.
The rate of the 15-day facility, on the other hand, declined to 4.3249 percent from the previous week’s 4.3310 percent.
It was offered for PHP60 billion and received tenders totaling PHP69.993 billion. The auction committee made a full award. Bid coverage ratio declined to 1.1666 from 1.1231.
This was offered for PHP60 billion last week and tenders was higher at PHP67.388 billion.
The average rate of the 28-day TDF, meanwhile, slipped to 4.3496 percent from week-ago’s 4.3522 percent.
Bid coverage ratio went down to 0.7452 from last week’s 1.0314 after tenders only amounted to PHP44.71 billion against the PHP60-billion offer.
This was offered for PHP50 billion last week and received PHP51.568 billion worth of bids.
BSP Deputy Governor Francisco Dakila Jr. said the higher offering for the longest-tenor facility was “due to expected higher liquidity from the implementation of the reduction in reserve requirements of banks.”
“The auction results were generally in line with the BSP’s expectations,” he said, adding undersubscription on the longest tenor facility was due to banks’ preference for shorter tenors ahead of the holidays. (PNA)
