MANILA – All tenors of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) registered drops Wednesday but all were oversubscribed.
Data released by the central bank showed that average rate of the seven-day facility declined to 3.7557 percent from 3.7821 percent during the auction last March 4.
BSP offered this for PHP50 billion and was fully awarded after banks submitted a total of PHP66.733 billion worth of bids.
Bid coverage ratio increased to 1.3347 from 0.9739 last week when this tenor was offered for PHP50 billion and received PHP48.697-billion tenders.
Rate of the 14-day facility went down to 3.7757 percent from 3.8102 percent previously.
Bid coverage ratio increased to 1.4169 from 1.3114 after tenders reached PHP70.844 billion against the PHP50-billion offer. The auction committee made a full award.
Average rate of the 28-day TDF slipped to 3.7436 percent from 3.7860 percent last week.
Bid coverage ratio also went down after ending the auction at 1.5963 from 2.2355 in the previous week.
BSP offered this for PHP50 billion and attracted PHP79.813 billion worth of bids. The auction committee made a full award.
In a statement, the BSP attributed the large bid on this week’s auction to “market expectations ahead of the policy meeting as well as preference for safe assets.”
The central bank’s policy-making Monetary Board will have its second-rate setting meet for the year on March 19, and it is widely expected to cut key policy rates anew as additional measure by the government against the economic impact of the coronavirus disease 2019 (Covid-19).
“In addition, the higher liquidity in the system was due in part to the national government's cash disbursement,” the statement added. (PNA)
