MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) ended mixed Wednesday, with undersubscription registered for the shortest tenor.
Data released by the central bank showed that the rate of the seven-day facility rose to 4.0240 percent from 4.0233 percent during the auction last January 29.
BSP offered this tenor still for PHP80 billion but banks submitted PHP66.749 billion worth of bids, which was all accepted.
The lower bids this week compared to the PHP105.23 billion tenders last week resulted in the drop in the bid coverage ratio to 0.8344.
The average rate of the 14-day TDF declined to 4.0197 percent from last week’s 4.0397 percent.
The bid coverage ratio slipped to 1.0802 from the previous auction’s 1.5680.
Banks submitted a total of PHP64.814 billion worth of bids, higher than the PHP60-billion offer, which is similar to last week’s offer.
However, the tenders this week are lower than the PHP94.08 billion last week.
The rate of the 28-day facility dropped to 4.0419 percent from last week’s 4.0741 percent.
Tenders reached PHP76.241 billion, higher than the PHP60-billion tenders this week as well as last week’s PHP63.665 billion.
Offering for this tenor reached PHP60 billion last week thus, the higher tenders this week resulted in the rise of the bid coverage ratio to 1.2707 from the previous auction’s 1.0611.
BSP Deputy Governor Francisco Dakila Jr. has repeatedly traced the general drop in the TDF’s average rate to higher liquidity situation in the domestic economy, especially after the holidays. (PNA)
