By Joann Villanueva/ PNA
MANILA — The rates of Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) registered mixed results after Wednesday’s auction, but all tenors ended up oversubscribed.
Data released by the central bank showed that rate of the seven-day facility fell to 5.1027 percent from 5.1248 percent during the auction last February 20.
It was offered for PHP20 billion and received tenders amounting to PHP36.759 billion. The auction committee made a full award. Bid coverage ratio went down to 1.8380 from last week’s 1.9058.
On the other hand, rates of both the 14-day and the 28-day TDF rose to 5.1661 percent and 5.2017 percent, respectively. These were at 5.1659 percent and 5.1822 percent for the 14-day and 28-day facilities during the auction last week.
Bids for the 14-day facility reached PHP21.874 billion, higher than the PHP20 billion offering, which is also what was awarded. Its bid coverage ratio declined to 1.0937 from last week’s 1.6795.
Tenders for the 28-day facility amounted to PHP11.362 billion, higher than the PHP10-billion offer. This was also fully awarded. Bid coverage ratio improved to 1.1362 from 0.9188 in the previous week.
In the past, TDFs tend to attract lower bids right before holidays.
Monetary officials explained this by saying that banks prefer to keep their cash during the holidays to efficiently address clients’ needs.
