TDF rates decline this week

Data released by the central bank showed that rate of the seven-day facility dropped to 4.0301 percent from 4.0851 percent during the auction last January 15. (Pixabay photo)

MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) term facilities fell across-the-board Wednesday due to oversubscription.

Data released by the central bank showed that rate of the seven-day facility dropped to 4.0301 percent from 4.0851 percent during the auction last January 15.

The central bank offered this tenor for PHP80 billion this week, higher than the PHP60 billion last week.

Tenders reached PHP134.77 billion, also higher than the PHP95.282 billion in the previous week.

This resulted in the rise of the bid coverage ratio to 1.6846 against the 1.5880 last week.

Average rate of the 14-day facility also declined to 4.0530 percent from 4.1065 percent in the previous auction.

Bids totaled to PHP76.564 billion, higher than the PHP60-billion offer. Last week, the PHP50 billion offer received PHP103.847 billion worth of bids.

Bid coverage ratio fell to 1.2761 this week from last week’s 2.0769.

Average rate of the 28-day facility slipped to 4.0917 percent from last week’s 4.1502 percent.

BSP offered this for PHP60 billion and tenders are higher at PHP87.322 billion.

This week’s offering is higher than the PHP50-billion last week, which got total bids of PHP75.02 billion.

Bid coverage ratio decreased to 1.4554 from 1.5004 last week.

All tenors were fully awarded this week.

BSP Deputy Governor Francisco Dakila Jr. said TDF offering this week has been increased relative to last week yet, banks still submitted large bids.

“Oversubscription was seen in all three TDF tenors as liquidity continues to gradually return following the holiday season,” he said in a statement Wednesday.