TDF rates rise anew

BSP offered this facility for PHP50 billion, higher than the PHP40 billion last week. However, tenders amounted to PHP73.282 billion, lower than the PHP77.305 billion last week. (File Photo: Bangko Sentral ng Pilipinas/Facebook)

MANILA — The rates of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) continued to rise in step with the upward movement of domestic interest rates although bid coverage ratio fell across-the-board.

Data released by the central bank Wednesday showed that the weighted average accepted yield of the seven-day facility increased to 4.7274 percent from 4.7127 percent during the auction last October 3.

However, bid coverage ratio went down to 1.4656 from 1.9326 last week due to lower tenders.

BSP offered this facility for PHP50 billion, higher than the PHP40 billion last week. However, tenders amounted to PHP73.282 billion, lower than the PHP77.305 billion last week.

The rate of the 14-day facility rose to 4.7729 percent from 4.7353 percent last week.

The facility’s bid coverage ratio, on the other hand, declined to 1.6608 from 2.7220 last week.

This, even as the tenders for the middle tenor facility improved to PHP33.216 billion, higher than the PHP27.220 billion last week. The drop can be attributed to the higher offering this week of PHP20 billion, twice compared to the PHP10 billion last week.

Similarly, the rate of the 28-day facility inched up to 4.8549 percent from 4.7884 percent last October 3.

Bid coverage ratio slipped to 1.7761 from 2.6505 last week.

Tenders reached PHP17.761 billion, lower than the PHP26.505 billion last week.

Monetary officials earlier traced the lower tenders submitted during the TDF auctions to the need of banks to hold on to their funds, to be able to meet the liquidity requirements of their clients, especially during holidays.