TDF rates up this week

Data released by the central bank showed that rate of the six-day facility went up to 3.3548 percent from the 3.3546 percent last October 25 auction. (Photo: Bangko Sentral ng Pilipinas/ Facebook)

MANILA— Rates of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) rose Thursday, with banks exceeding the offering for the longer-dated facility.

Data released by the central bank showed that rate of the six-day facility went up to 3.3548 percent from the 3.3546 percent last October 25 auction.

Tenor of the shorter-dated facility in this week’s trading was cut from the original seven-day on account of the All Saints’ Day holiday Wednesday while it was raised to eight days in the previous auction also due to the holiday.

BSP offered the six-day facility for PHP40 billion but tenders only reached PHP30.528 billion, which was fully accepted by the auction committee. Bids in last week’s auction are higher at PHP40.868 billion.

Rate of the facility increased but its bid coverage ratio declined to 0.7632 from last week’s 1.0217.

Rate of the 28-day facility ticked up to 3.4940 percent from the previous auction’s 3.4925 percent.

Bid coverage ratio improved to 1.0069 from 0.7569 last week.

Tenders reached PHP90.619 billion, higher than the PHP90 billion offering and the PHP75.687 billion in the previous auction.

For the November 8 auction, BSP will still offer the seven-day TDF for PHP40 billion and the 28-day facility for PHP90 billion.