The rates of the Bangko Sentral ng Pilipinas' (BSP) term facilities fell anew this week.
BSP data released Wednesday showed that the average rate of the seven day term deposit facility (TDF) slipped to 3.8250 percent from 3.8301 percent during the auction last February 19.
BSP offered this tenor for PHP40 billion and banks submitted lower bids this week amounting to PHP50.263 billion relative to last week's PHP66.422 billion worth of tenders.
This resulted in the decline of the bid coverage ratio to 1.2566 from last week's 1.6606.
The rate of the 14 day facility decreased to 3.8654 percent from 3.8759 percent.
The bid coverage ratio, however, improved to 1.3982 from last week's 1.1544 after the PHP50 billion offer was met with PHP69.91 billion tenders this week, higher than the PHP57.718 billion in the previous week.
The average rate of the 28 day facility also went down to 3.8918 percent from the previous auction's 3.8984 percent.
Its bid coverage ratio declined to 1.3374 from 1.4832 during the auction a week ago.
BSP Deputy Governor Francisco Dakila Jr. cited that all tenors remained over subscribed this week, with total tenders reaching PHP173.67 billion, higher than the PHP130 billion offer.
He previously attributed the large volume of bids to high liquidity situation in the domestic economy.
SOURCE : PHILIPPINES NEWS AGENCY