Term deposit rates decline

MANILA – Rates of the Bangko Sentral ng Pilipinas’ (BSP) term facilities sustained its decline Wednesday but all tenors were oversubscribed.

Data released by the central bank showed that average rate of the seven-day facility slipped to 3.8301% from 3.8943% during the auction last February 12.

This facility was offered for P40 billion and banks submitted tenders amounting to P66.422 billion. This was fully awarded.

Bid coverage ratio rose to 1.6606 from last week’s 0.8277 when this tenor was offered for P60 billion, and received tenders amounting to P49.66 billion.

Rate of 14-day facility slipped to 3.8759% from 3.8772% last week.

Bid coverage ratio rose to 1.1544 from the previous auction’s 1.0591 after bids reached P57.718 billion, higher than the P50billion offer. The auction committee made a full award.

Average ratio of the 28-day TDF dropped to 3.8984% from week-ago’s 3.9054%.

Tenders totaled to P59.328 billion, higher than the P40-billion offer, which was fully awarded.

In a statement, BSP Deputy Governor Francisco Dakila Jr. traced the large tenders in this week’s TDF auction to normalization of domestic liquidity in the financial system after the government’s recent issuance of the three-year Retail Treasury Bond. (PNA)