The Bangko Sentral ng Pilipinas (BSP) reported a marginal decline in term deposit facility (TDF) rates in its latest auction on 27 August, even as it reduced the total offering.

According to the BSP, the weighted average interest rates slipped by 0.82 basis point to 5.2475 percent for the 7-day tenor and by 0.79 basis point to 5.2675 percent for the 14-day tenor.

The central bank cut the total offer volume to P80 billion, with both the 7-day and 14-day facilities trimmed to P40 billion each from the previous P50 billion.

Demand remained firm, with total tenders reaching P74.45 billion, higher than last week’s P71.36 billion. The 7-day facility posted a bid-to-cover ratio of 0.72x, while the 14-day tenor was oversubscribed at 1.14x.

The BSP accepted P28.675 billion worth of bids for the 7-day offering, while fully awarding the 14-day facility.

Accepted yields widened to 5.1650–5.2700 percent for the 7-day tenor and 5.2400–5.2799 percent for the 14-day tenor, the BSP added.