MANILA – The mixed results in the term deposit facility (TDF) auction by the central bank continued Wednesday but all tenors remained oversubscribed.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the rate of the seven-day TDF declined to 1.8346 percent from 1.8377 percent during the auction last Sept.16.
The rate of the 14-day facility rose to 1.8520 percent from last week’s 1.8460 percent, and the 28-day facility to 1.8416 percent from week-ago’s 1.8409 percent.
BSP offered the shortest tenor TDF for PHP170 billion, and received tenders amounting to PHP262.56 billion.
This resulted in the rise of the bid coverage ratio to 1.5445 from last week’s 1.3286 when the PHP160-billion offer was met with PHP212.569 billion worth of tenders.
Tenders for the mid-tenor term facility amounted to PHP253.87 billion, higher than the PHP190-billion offer.
Bid coverage ratio declined to 1.3362 from last week’s 1.5629 after tenders reached PHP265.685 billion, higher than the PHP170-billion offer.
Bids for the longest tenor TDF reached PHP58.88 billion, higher than the PHP30-billion offer.
Bid coverage ratio went down to 1.9627 from last week’s 2.4865 when this tenor was offered for PHP20 billion, and received tenders amounting to PHP49.73 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “auction results continue to reflect ample liquidity conditions in the financial system.”
“The BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions moving forward,” he added. (PNA)
