by Joann Villanueva/PNA
Bids for the Bangko Sentral ng Pilipinas’ (BSP) seven-day and 14-day Term Deposit Facility (TDF) declined week-on-week Wednesday but a ranking monetary official noted that bids remained higher than the offer.
Data released by the central bank showed that tenders for the seven-day facility amounted to PHP34.296 billion, higher than the PHP20 billion offer but lower than the PHP42.285 billion submitted by banks on March 6. The auction committee awarded it in full.
This resulted in the decline of the bid coverage ratio to 1.7148 from 2.1143 last week.
The rate of the tenor went down to 5.0214 percent from 5.0342 percent during the auction last week.
Tenders for the 14-day facility amounted to a total of PHP32.053 billion, higher than the PHP20-billion offer but a drop from last week’s PHP33.516 billion. The auction committee also made a full award for this tenor.
Bid coverage ratio, thus, slipped to 1.6027 from 1.6758 last week.
Its rate averaged at 5.0975 percent from last week’s 5.1452 percent.
There was no offer for the 28-day TDF this week.
BSP Deputy Governor Diwa Guinigundo said that amid the lower bids in this week’s auction, liquidity remained high.
“Still shows system is liquid, banks have enough surplus to place with BSP,” he said in a reply to a question from the Philippine News Agency (PNA).
For the auction on March 20, offer for the seven-day and 14-day TDF will remain at PHP20 billion while it is PHP10 billion for the 28-day facility.
