MANILA – Rates of all tenors of Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) dropped Wednesday but bids registered mixed results.
BSP data released Wednesday showed that average rate of the seven-day facility slipped to 3.7821 percent from 3.8250 percent during the auction last February 26.
This tenor was offered for PHP50 billion, higher than last week’s PHP40-billion offer, but received bids amounting to PHP48.697 billion, which the auction committee fully accepted.
The lower bids this week, compared to the PHP50.263 billion last week, resulted in the drop of the bid coverage ratio to 0.9739 from 1.2566.
Rate of the 14-day facility declined to 3.8102 percent from 3.8654 percent in the previous auction.
Bid coverage ratio went down to 1.3114 from the previous auction’s 1.3982.
This, after banks submitted PHP52.454 billion worth of bids, higher than the PHP40-billion offer but relatively lower than the PHP69.91-billion tenders last week when this tenor was offered for PHP50 billion.
Average rate of the 28-day facility declined to 3.7860 percent from last week’s 3.8918 percent.
BSP offered this tenor for PHP30 billion and bids are more than twice at PHP67.065 billion. The auction committee made a full award for this tenor.
The strong demand for this paper resulted in the increase of its bid coverage ratio to 2.2355 from 1.3374 last week.
“Total tenders received for all tenors was oversubscribed at PHP168.22 billion although there was a slight undersubscription in the seven-day TDF as the market preferred longer tenors,” BSP Deputy Governor Francisco Dakila Jr. said in a statement. (PNA)
