MANILA, June 28 – – Tenders for both the seven-day and 28-day term deposit facilities (TDF) of the Bangko Sentral ng Pilipinas (BSP) fell below the offerings set by the central bank.
On Wednesday, central bank data show that bids for the shorter-dated TDF amounted to PHP32.538 billion, lower than the PHP 40 billion offering. The auction committee accepted all the bids.
It has been a long time since this tenor attracted bids that are lower than the offering and monetary officials have traced the usual oversubscription to investors’ preference for shorter-dated tenors given the volatilities in the financial market.
Weighted average accepted yield rose to 3.0507 percent from last week’s 2.9904 percent.
Bid coverage ratio of this tenor fell to 0.8135 this week from 1.9582 in last week’s auction.
Bids for the longer-dated TDF amounted to PHP94.925 billion, still lower than the PHP 140 billion offering. The auction committee accepted PHP 84.125 billion.
Weighted average accepted yield stood at 3.4925 percent, up from last week’s 3.4889
Bid coverage ratio improved to 0.6780 from last week’s 0.5954. (JSV/PNA)
