MANILA -- Rates of the central bank's term deposit facility (TDF) are mostly down Wednesday despite the larger bids submitted by banks.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the average rate of the seven-day facility went down to 4.4141 percent from 4.4852 percent during the auction last August 28.
The central bank cut the offering for this tenor to PHP10 billion, which was fully awarded, from week-ago's PHP20 billion, and attracted larger bids amounting to PHP24.905 billion.
In last week's auction, tenders amounted to PHP19.228 billion. Thus, bid coverage ratio improved to 2.4905 from 0.9614 in the previous week.
Also, average rate of the 14-day facility declined to 4.4352 percent from week-ago's 4.5055 percent.
Tenders reached PHP22.98 billion, more than double the PHP10-billion offer. The auction committee made a full award.
Bid coverage ratio posted an uptick to 2.2980 from last week's 1.2161 due to higher bids this week relative to the offer volume.
BSP offered this tenor for PHP20 billion last week, but banks submitted tenders amounting to PHP24.322 billion.
On the other hand, rate of the 28-day facility improved to 4.4950 percent from 4.4832 percent last week. It was offered for PH20 billion and was awarded in full after bids reached PHP28.17 billion.
Bid coverage ratio rose to 1.4085 from 0.8301 last week.
The offer volume for the 4 September auction was reduced from the previous week's offer of PHP80-billion in anticipation of lower excess liquidity to be siphoned from the financial system owing to month-end tax-remittances, BSP Deputy Governor Francisco Dakila Jr. said in a statement.
Source: Philippines News Agency