MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) declined anew despite below-offer bids for the seven-day facility.
Data released by the central bank Wednesday showed an average rate of 1.6157 percent for the seven-day facility and 1.6256 percent for the 14-day facility.
These were at 1.6220 percent and 1.6400 percent for the seven- and 14-day TDF during the auction last Jan. 27.
The BSP offered the shorter dated facility for PHP240 billion but it was undersubscribed after tenders amounted to PHP210.61 billion, which the auction committee fully accepted.
The bid coverage ratio stood at 0.8775.
The 14-day facility was offered for PHP390 billion and bids reached PHP451.262 billion.
The auction committee made a full award.
Amid the lower bids for the one-week facility, BSP Deputy Governor Francisco Dakila Jr. said total tenders in this week’s TDF auction “were generally in line with the BSP’s expected volume range.”
Dakila said, “the slight undersubscription in the seven-day tenor reflects market participants’ increased preference for longer maturities in order to seek higher yields amid a very liquid environment.”
“Looking ahead, the BSP will remain guided by its assessment of liquidity conditions and market developments in the conduct of its monetary operations,” he added. (PNA)
