MANILA – Rates and bid coverage ratio of the Bangko Sentral ng Pilipinas’ (BSP) term facilities fell on Wednesday.
The data released by the central bank showed that rate of the seven-day facility dropped to 4.0851 percent from 4.1641 percent during the auction last Jan. 8.
BSP offered this facility for P60 billion and banks submitted a total of P95.282 billion worth of bids. The auction committee made a full award.
Tenders for this tenor are lower this week compared to the P102.182 billion bids last week, while the offering is higher than last week’s P40 billion.
This resulted in the drop in bid coverage ratio to 1.5880 from last week’s 2.5546.
The average rate of the 14-day facility declined to 4.1065 percent from last week’s 4.2364 percent.
Banks submitted a total of P103.847 billion worth of bids, more than twice the P50-billion offer, which was what was awarded this week.
This resulted in the slip of the bid coverage ratio to 2.0769 from 2.2227 last week when the P40-billion offer was met with P88.906 billion worth of bids.
The rate of the 28-day facility slid to 4.1502 percent from 4.2704 percent in the previous auction.
It was offered for P50 billion and received P75.021 billion worth of bids. The auction committee made a full award.
The bid coverage ratio is lower at 1.5004 from last week’s 2.1284 when the offer is P40 billion and tenders amounted to P85.136 billion.
BSP Deputy Governor Francisco Dakila Jr. said there was an oversubscription on all tenors but lower than last week “as liquidity gradually returns following the holiday spending.” (PNA)
