MANILA – The Bangko Sentral ng Pilipinas (BSP) did not offer anew the 28-day term deposit facility (TDF) Wednesday but oversubscriptions were registered for both the seven- and 14-day facilities.
Data released by the central bank showed that the rate of the shortest tenor rose to 1.8813 percent and the 14-day to 1.9051 percent.
These were at 1.8466 percent and 1.8426 percent during the auction last Oct. 14.
The BSP offered the shortest tenor facility still for PHP220 billion, and bids reached PHP225.955 billion. This tenor was fully awarded.
Its bid coverage ratio declined to 1.0271 from 1.1568 last week when the PHP220-billion offer was met with PHP254.485 billion.
Meanwhile, the BSP hiked the offer for the 14-day facility to PHP270 billion from last week’s PHP250 billion. The auction committee made a full award.
The bid coverage ratio dropped to 1.0849 from last week’s 1.2788 when tenders totaled to PHP319.705 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said the volume of tenders in this week’s TDF auction is within their expectations, citing the ample liquidity in the domestic financial system.
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added.