TDF rates up this week

Data released by the BSP showed that rate of the seven-day facility posted an uptick to 4.2069 percent from last week’s 4.1759 percent. (File Photo: Bangko Sentral ng Pilipinas/Facebook)

MANILA — Impact of the hike in the Bangko Sentral ng Pilipinas’ (BSP) key rates earlier this month continues to produce similar results in other investments such as the central bank’s Term Deposit Facility (TDF), which registered increases in all tenors Wednesday.

Data released by the BSP showed that rate of the seven-day facility posted an uptick to 4.2069 percent from last week’s 4.1759 percent.

Rate of the 14-day facility rose to 4.2976 percent from 4.2449 percent in last week’s auction and the 28-day facility to 4.3590 percent from 4.2844 percent in the previous week.

On the other hand, bid coverage ratio of all tenors fell across-the-board to 1.0542, 0.9472 and 1.3342 for the shortest to longest tenor, respectively.

Last week, bid coverage ratio of the seven-day facility is 1.2634 while it is 1.5633 for the 14-day TDF and 1.7361 for the 28-day facility.

This turn-out was caused by the lower bids submitted by banks this week.

BSP offered the shortest tenor TDF for PHP40 billion and tenders reached PHP42.169 billion, which, on the other hand, is lower than the PHP50.537 billion submitted last week.

The 14-day facility was undersubscribed after bids reached PHP37.887 billion, lower than the PHP40 billion offering and the PHP62.531 billion tenders last week.

Tenders for the 28-day facility totaled to PHP26.683 billion, higher than the PHP20 billion offering but lower than the PHP34.722 billion in last week’s auction.

Monetary officials earlier said bids submitted during TDF auctions partly depends on banks’ appreciation of their liquidity needs in the coming days.

During the holiday season last year, TDF attracted fewer bids as banks prepare for higher liquidity demand of their clients.

The same situation was also observed ahead of a holiday.

A holiday was declared Tuesday this week for the celebration of the Muslim feast Eid al-Adha or Feast of Sacrifice. The same day was also the Ninoy Aquino Day.

There will be another holiday Monday next week – – the National Heroes Day.