TDF rates rise again ahead of MB policy meet

MANILA – The rates of all tenors of central bank’s Term Deposit Facility (TDF) rose again this week attributed to the expectations that the Monetary Board (MB) will impose another hike in key rates when it meets Thursday.

Weighted average rate of the seven-day facility went up to 4.

4215 percent Wednesday from 4.3884 percent during the auction last September 19.

The rate of the 14-day TDF rose to 4.4722 percent from 4.4339 percent last week and the 28-day facility’s to 4.4877 percent from 4.4754 percent.

On the other hand, bid coverage ratio registered mix results, with those of the shortest and longest tenors down but the 14-day TDF, up.

Bid coverage ratio of the seven-day TDF declined to 1.2907 from 1.5081 last week due to lower tenders submitted by the banks.

Bids reached PHP51.627 billion, higher than the PHP40 billion offering but lower than the PHP60.324 billion last week.

The same happened to the 28-day facility, which was offered for PHP10 billion.

Tenders reached PHP4.585 billion, lower than the PHP9.485 billion last week.

On the other hand, the 14-day facility was undersubscribed after banks submitted PHP9.643 billion tenders, lower than the PHP10 billion offering as well as the PHP17.

440 billion bids last week. But this week’s offering has been cut from last week’s PHP20 billion.

For the auction on October 3, the Bangko Sentral ng Pilipinas will offer the seven-day facility for PHP40 billion and the 14-day and 28-day facilities at PHP10 billion each.