By Joann Villanueva/PNA
MANILA — The rates of Bangko Sentral ng Pilipinas’ (BSP) term facilities registered mix results Wednesday ahead of the Monetary Board’s (MB) much anticipated rate-setting meeting on Thursday.
The average accepted yield of the 14-day Term Deposit Facility (TDF) improved to 5.1079 percent from 5.0975 percent during the auction last March 13.
However, the rate of the seven-day TDF went down to 4.9803 percent from the previous week’s 5.0214 percent.
The BSP offered the 28-day tenor this week, after excluding it from the previous week’s auction, and it’s rate averaged at 5.0987 percent, lower than the 5.1758 percent during the auction on March 6.
The bid coverage ratio on all tenors declined after banks submitted bids that were lower than the previous week and the previous two weeks in the case of the longest-tenor facility.
The coverage ratio of the seven-day facility slipped to 1. 3627, the 14-day to 1.1099 and the 28-day to 1.6078.
These were at 1.7148 for the seven-day and 1.6027 for the 14-day last week and 1.9228 for the 28-day last March 6.
The auction committee awarded in full all the tenors at PHP20 billion both for the seven-day and 14-day facility and PHP10 billion for the 28-day.
Tenders for the shortest tenor facility reached PHP27.254 billion, lower than the PHP34.296 billion last week.
Banks submitted PHP22.198 billion worth of bids for the mid-tenor facility, also lower than the previous week’s PHP32.053 billion tenders.
Bids for the longest-tenor TDF amounted to PHP16.078 billion, lower than the previous two week’s PHP19.228 billion.
Bids for the central bank’s term facilities have been fluctuating, but BSP Deputy Governor Diwa Guinigundo has repeatedly said that the lower bids do not necessarily mean that there is tightness in domestic liquidity because banks submit bids depending on the projected requirements of their clients, especially during a holiday, and their excess funds.
