Bids for term deposits up but rates mixed

Rates of the Bangko Sentral ng Pilipinas’ (BSP) term facilities ended mixed Wednesday, but all tenors were oversubscribed.

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Data released by the central bank showed that average rate of the seven-day facility declined to 4.3323 percent from 4.3486 percent during the auction last September 11.

It was offered for PHP20 billion and received PHP32.598 billion worth of tenders. The auction committee made a full award.

Bid coverage ratio went down to 1.6299 from the previous auction’s 2.3700 after last week’s PHP10-billion offer was met with PHP23.7 billion worth of bids.

Rate of the 28-day facility also contracted and ended the day at 4.4578 percent from last week’s 4.4907 percent.

Its bid coverage ratio declined to 1.0841 from 1.7621 after banks submitted PHP32.523-billion tenders, higher than the PHP30-billion offer. This tenor was fully awarded.

Last week, banks submitted PHP35.241 billion worth of tenders against the PHP20-billion offer.

On the other hand, rate of the 14-day facility improved to 4.4139 percent from last week’s 4.3995 percent.

It was offered for PHP30 billion and received bids amounting to PHP31.314 billion. The auction committee made a full award.

Bid coverage ratio went down to 1.0438 from 1.7227 in last week’s auction due to the higher bids last week amounting to PHP34.454 billion relative to the PHP20-billion offer.

“The results of the TDF auction reflected an increase in the liquidity to be siphoned from the financial system owing to the release of funds from the deposits of the National Government with the BSP,” the central bank said in a statement. (PNA)