MANILA- Rates of the Bangko Sentral ng Pilipinas’ (BSP) term facility registered a decline across-the-board on Wednesday, even as all tenors were oversubscribed.
Data released by the BSP showed that the average rate of the seven-day facility declined to 4.2348 percent from 4.2501 percent.
It was offered for P30 billion and tenders reached P38.63 billion, resulting in the rise of the bid coverage ratio to 1.2877 from 1.1424 during the auction last Oct. 2.
In the previous auction, the longest tenor was offered for P30 billion and bids were lower compared to this week at P34.272 billion.
Similarly, the rate of the 14-day TDF also went down after ending the day at 4.2485 percent from 4.2547 percent last week.
It attracted P43.38 billion worth of bids, higher than the P30-billion offer.
Bid coverage ratio also went down to 1.4460 from the previous auction’s 1.5417.
Last week, this tenor was offered for P20 billion but bids totaled P30.834 billion.
The average rate of the 28-day facility also slipped to 4.2754 percent from 4.3038 percent last week.
The BSP offered this tenor for P20 billion and received tenders amounting to P32.767 billion.
Bid coverage ratio rose to 1.6384 from 1.3521 last week after this tenor was offered for P20 billion and received bids amounting to P27.042 billion.
Monetary authorities have attributed the changes in the term deposit facility rates partly to anticipation on local interest rates’ path given the developments here and abroad.(PNA)
