MANILA -- Both the rates and bid coverage ratio of Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) fell across-the-board Wednesday as investors became more cautious over fresh volatilities in the financial market.
The rate of the seven-day facility dropped to 5.0638 percent from 5.0706 percent during the auction last January 9.
This tenor was oversubscribed at PHP29.739 billion, higher than the PHP20 billion offering but lower than the PHP35.34 billion tenders in last week’s trading. The auction committee made a full award.
With the lower bids this week, the tenor’s bid coverage ratio fell to 1.4870 from last week’s 1.7670.
The same developments were registered by the other tenors, with the 14-day facility’s interest down to 5.1290 percent from last week’s 5.1530 percent.
Its bid coverage ratio went down to 0.8660 from 1.1649 last week.
This, after banks submitted a total of PHP17.319 billion worth of bids, lower than the PHP20 billion offering and the PHP23.297 billion tenders last week.
Also, the average rate of the 28-day paper declined to 5.1339 percent from last week’s 5.1694 percent.
It was offered for PHP10 billion and tenders reached PHP12.720. However, this week’s bids are lower than the previous auction’s PHP14.877 billion.
Thus, bid coverage ratio declined to 1.2720 from 1.4877 last week. (PNA)
