BSP slashes offering for 28-day facility in next week’s auction

FILE PHOTO: Continued undersubscription in the Bangko Sentral ng Pilipinas (BSP) 28-day Term Deposit Facility (TDF) made central bank officials cut anew the offering volume for this tenor. (Photo by Bangko Sentral ng Pilipinas, Public Domain)

MANILA — Continued undersubscription in the Bangko Sentral ng Pilipinas (BSP) 28-day Term Deposit Facility (TDF) made central bank officials cut anew the offering volume for this tenor.
Data released by the central bank Wednesday showed that the BSP will offer PHP100 billion under its longer-tenor TDF facility on October 4, lower than the Php110 billion offering as of this week’s auction.

The longer-dated facility will be 29-day on October 4 since November 1 is a national holiday.
The last time the BSP cut the offering for the 28-day facility was for the auction last September 8, when the volume was slashed from PHP140 to PHP110 billion due to low turn-out of bids.

On Wednesday, bids for the facility amounted to PHP79.59 billion, slightly higher than the PHP67.155 billion in the previous week’s auction but lower than the Php110 billion offering. The auction committee accepted all the bids.

Weighted average accepted bid for this facility declined to 3.4907 percent from the previous week’s 3.4960 percent.

Bid coverage ratio, on the other hand, rose to 0.7235 from last week’s 0.6105.

Bids for the seven-day facility reached PHP27.785 billion, lower than the PHP36.890 billion a week ago and the Php40 billion offering. The auction committee accepted all the bids.Weighted average accepted yield rose to 3.3678 percent from last week’s 3.3765 percent.

Weighted average accepted yield rose to 3.3678 percent from last week’s 3.3765 percent.
Bid coverage ratio, meanwhile, declined to 0.6946 from 0.9223 last week.
Offering for the seven-day facility on October 4 amounts to PHP40 billion.