MANILA – The rates of Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) fell across-the-board Wednesday but the offering for the longest tenor increased for next week’s auction.
Data released by the central bank showed that weighted average accepted yield of the seven-day facility went down to 4.7207 percent from 4.7274 last week.
Its bid coverage ratio also posted a drop to 1.3200 from 1.4656.
This, after banks submitted PHP66.002 billion-worth of bids, higher than the PHP50 billion offering but lower than the PHP73.282 billion last week. The auction committee made a full award.
Rate of the 14-day facility dropped to 4.7650 percent from 4.7729 percent previously.
Its bid coverage ratio also went down to 1.5637 from last week’s 1.6608.
Tenders amounted to PHP31.273 billion, higher than the PHP20 billion offering but the lower than the PHP33.216 billion during the auction last October 10. The auction committee also made a full award for this tenor.
The rate of 28-day TDF also slipped after ending the auction at 4.8362 percent from 4.8549 percent last week.
Its bid coverage ratio, on the other hand, improved to 2.1805 from 1.7761 last week. It was lifted by the increase of bids to PHP21.805 billion, higher than the PHP10 billion offering and last week’s PHP17.761 billion tenders. This facility was also awarded in full.
The drop of rates this week is contrary to the outcome in recent weeks but authorities have traced this partly to a wait-and-see stance concerning the direction of inflation.
Monetary officials have said that inflation is expected to remain elevated this year but to go down to within-target levels next year.
For the auction on Oct. 24, the seven- and 14-day facilities will still be offered for PHP50 billion and PHP20 billion, respectively, while offering for the longest tenor facility was hiked to PHP20 billion. (PNA)
