Tenders for the Bangko Sentral ng Pilipinas' (BSP) term facility surged Wednesday, and a ranking central bank official attributed the increase to high liquidity situation and lesser demand for the local currency after the holidays.
Data released by the central bank showed that all term deposit facility (TDF) tenors were oversubscribed at least twice the offer.
The seven-day facility received a total of PHP102.182 billion worth of bids, more than two times the PHP40-billion offer. The auction committee made a full award. Its bid coverage ratio improved to 2.5546 from 1.6202 during the auction last January 2.
Its average rate, on the other hand, declined to 4.1641 percent from 4.2345 percent in the previous auction.
Bids for the 14-day TDF amounted to PHP88.906 billion, higher than the PHP40 billion offer, which was also awarded this week. The bid coverage ratio increased to 2.2227 from last week's 1.6391.
Its rate averaged at 4.2364 percent, lower than the week-ago's 4.3045 percent.
Tenders for the 28-day TDF reached PHP85.136 billion, higher than the PHP40-billion offer. The auction committee made a full award. The bid coverage ratio of this tenor increased to 2.1284 from 1.8552 last week.
Its average rate went down to 4.2704 percent from 4.3302 percent last week.
All three tenors were oversubscribed with total tenders received amounting to P276.22 billion, reflecting an increase in system liquidity that needs to be absorbed as demand for currency declines following the holiday season, BSP Deputy Governor Francisco Dakila Jr. said in a statement.
Source: Philippines News Agency