MANILA — Rate of the central bank’s seven-day Term Deposit Facility (TDF) fell Wednesday even as bids for the facility were more than twice the PHP40 billion offering.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that weighted average accepted yield of the facility declined to 3.3654 percent from 3.3995 percent during the auction on Dec. 27, 2017.
Tenders reached PHP95.55 billion, more than the PHP59.808 billion bids in the previous auction.
However, bid coverage ratio this week improved to 2.3888 from last week’s 1.4952.
For the third week in a row, the central bank did not offer the 28-day facility due to sustained undersubscription in the past weeks.
BSP Deputy Governor Diwa Guinigundo earlier said they are in talks with bank officials on the possibility of introducing a third TDF tenor as suggested by banks.
Once the plan pushes through, the third TDF tenor would be shorter than 28 days but longer than seven days, he said.