Manila: The average rate of the Bangko Sentral ng Pilipinas' (BSP) seven-day term deposit facility (TDF) declined on Wednesday, reflecting a scenario where the bids exceeded the offered amount.
According to Philippines News Agency, central bank data indicated a decrease in the weighted average accepted yield, which fell to 4.4923 percent from the previous 4.4967 percent noted in the February 4 auction. The accepted yields were observed to range from 4.4500 percent to 4.5050 percent, showcasing a narrower range compared to last week's spread of 4.4500 percent to 4.5185 percent.
The BSP maintained its offer of PHP110 billion in debt paper but only awarded PHP107.44 billion despite total bids reaching PHP121.84 billion. The bid coverage ratio for the week was calculated at 1.2087, a figure higher than the 1.1076 recorded in the prior auction.
