MANILA-- Undersubscriptions were registered for both the seven-day and 28-day term deposit facilities (TDF) of the Bangko Sentral ng Pilipinas (BSP) Wednesday.
Data released by the central bank showed that the PHP30 billion offering for the shorter-dated TDF received PHP21.335 billion worth of bids, which in turn was awarded by the auction committee as is.
This led to the drop in this tenor's bid coverage ratio to 0.7118 from last week's 1.2053.
Accepted yield was between a range of 2.9000 percent to 3.5000 percent while weighted average accepted yield stood at 3.0478 percent.
The 28-day facility received bids amounting to PHP149.921 billion, also below the PHP150 billion offering.
The bid coverage ratio of this facility, however, improved to 0.9995 from last week's 0.8050 because bids for this week are higher than last week's PHP120.754 billion.
Weighted average accepted yield stood at 3.4208 percent from the accepted yield range of 3.3000 percent to 3.5000 percent.
Monetary officials have traced these undersubscriptions to the bank's preference for shorter-dated investment instruments and the wait-and-see stance as they await developments on, among others, the decision by the Federal Reserve to further increase key rates.
They however said a change in the offerings for both tenors is not in the immediate future, thus, the seven-day facility will still be offered for PHP30 billion and the 28-day TDF for PHP150 billion during the auctions on April 12 and 19.
Source: Philippines News Agency