MANILA -- The rates of two of Bangko Sentral ng Pilipinas' (BSP) lower term facilities registered mixed results during Wednesday's auction.
Data released by the central bank show that the average rate of the seven-day Term Deposit Facility (TDF) rose slightly to 4.9831 percent from 4.9803 percent during the auction last March 20.
Banks submitted a total of PHP22.985 billion worth of tenders, higher than the PHP20-billion offer but lower than the PHP27.254-billion tenders last week. The auction committee made a full award.
The lower bids resulted in the drop of the bid coverage ratio to 1.1493 from 1.3627 in the previous week.
On the other hand, the rate of the 14-day facility slipped to 5.0567 percent from week-ago’s 5.1079 percent.
Tenders amounted to PHP14.14 billion, higher than the PHP10-billion offer.
Last week, banks submitted PHP22.198-billion worth of bids, higher than the PHP20-billion offer.
The tenor’s bid coverage ratio improved to 1.4140 from 1.1099 last week.
The BSP did not offer the 28-day facility this week.
Last week, BSP Deputy Governor Diwa Guinigundo reiterated that TDF offer depends on the liquidity outlook for a certain period.
Historically, banks submit lesser bids during holidays since they keep their cash to be able to meet their clients’ requirements.
The next long holiday will be on Holy Week, which will fall on the third week of April. (PNA)
