TDF rates mixed anew

For the auction on Aug. 8, the BSP kept the same offering at PHP40 billion each for the seven-day and 14-day TDF and PHP20 billion for the 28-day facility. (Photo: Bangko Sentral ng Pilipinas/Facebook)

MANILA — The Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) rate posted mixed results Wednesday as banks continued to weigh their options concerning the direction interest rates are headed to.

Data released by the BSP showed that the rate of both the seven- and 14-day facility fell to 3.7405 percent and 3.9016 percent, respectively.

These were at 3.7494 percent for the shortest-dated TDF and 3.9084 percent for the 14-day facility during the auction last week.

On the other hand, the rate of the 28-day facility rose to 3.9605 percent from the previous week’s 3.9471 percent.

Bid coverage ratio also registered mixed results with that of the seven-day facility up to 1.2984 from last week’s 1.1859.

This developed after banks offered a total of PHP51.935 billion worth of bids, higher than the PHP40 billion offering and last week’s PHP47.436 billion tenders.

Meanwhile, the bid coverage ratio of both the 14-day and 28-day facilities declined with that of the middle tenor facility at 1.2450 from last week’s 1.3588.

Bids for the facility amounted to PHP49.801 billion, higher than the PHP40 billion facility but lower than the PHP54.352 billion last week.

Tenders for the longest tenor facility reached PHP18.943 billion, lower than the PHP20 billion offering and the PHP22.711 billion bids in last week’s auction.

This resulted in the drop of the bid coverage ratio to 0.9472 from last week’s 1.1356.

For the auction on Aug. 8, the BSP kept the same offering at PHP40 billion each for the seven-day and 14-day TDF and PHP20 billion for the 28-day facility.