MANILA – Oversubscription was registered during the term deposit facility (TDF) auction Wednesday even after the Bangko Sentral ng Pilipinas (BSP) increased the offering compared to the last auction in 2020.
Data released by the central bank showed that bids for the seven-day facility reached PHP380.918 billon, more than twice the PHP190-billion offer. The auction committee made a full award.
The six-day tenor, a day shorter because of a holiday, was offered for PHP170 billion last December 23, and received bids totaling to PHP159.937 billion.
Bid coverage ratio this week improved to 2.0048 from the previous session’s 0.9408.
The tenor’s weighted average rate declined to 1.6735 percent from 1.7115 percent in the previous auction.
Bids for the 14-day facility reached PHP486.374 billion, higher than the PHP340-billion offer.
Bid coverage ratio improved to 1.4305 from the previous session’s 1.1603.
Last Dec. 23, this tenor was offered for PHP320 billion and bids totaled to PHP371.286 billion.
Average interest rate this week slipped to 1.6819 percent from 1.7003 percent, previously.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said auction results this week “reflect increased market interest for the BSP’s deposit facilities as demand for cash gradually normalizes following the December holidays.”
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added. (PNA)
