MANILA – Undersubscription was again registered during the term deposit facility (TDF) auction Wednesday and a ranking Bangko Sentral ng Pilipinas (BSP) official said this in line with their expectations.
Data released by the central bank showed that the 15-day facility received tenders amounting to PHP41.519 billion, lower than the PHP50-billion offer. The central bank’s auction committee accepted all the bids.
The tenor’s bid coverage ratio slipped to 0.8304 from the 1.1666 during the auction last December 11.
Its rate averaged at 4.3288 percent, higher than the previous auction’s 4.3249 percent.
On the other hand, both the 8-day and 28-day facilities received strong demand.
Banks submitted a total of PHP73.831-billion worth of tenders for the shortest-tenor TDF, higher than the PHP60-billion offer.
Its bid coverage ratio increased to 1.2305 from last week’s 1.1139 when tenders reached PHP66.835 billion, higher than the PHP60-billion offer.
Bids for the 28-day facility totaled to PHP49.924 billion, higher than the PHP40-billion offer.
Its bid coverage ratio improved to 1.2481 from 0.7452 in last week’s auction.
Average rate declined to 4.3436 percent from 4.3496 percent last week.
BSP Deputy Governor Francis Dakila Jr. said the PHP150-billion offer in this week’s TDF auction is lower than last week’s PHP180 billion “amid expected increase in demand for cash ahead of the holidays.” (PNA)
