MANILA — Yield of Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) sustained its rise Wednesday, with all the tenors posting higher interest rates.
Data released by the central bank Wednesday showed that rate of the seven-day facility, the shortest tenor, rose to 3.1893 percent from 3.1767 percent in last week’s auction.
BSP offered it for PHP50 billion and tenders reached PHP70.838 billion, which on the other hand, was lower than last week’s PHP80.026 billion.
This resulted in the drop in the facility’s bid coverage ratio to 1.4168 from last week’s 1.6005.
Rate of the 14-day facility improved to 3.2404 percent from 3.1674 percent last week.
Tenders for this tenor reached PHP52.255 billion, higher than PHP40 billion offering and last week’s PHP43.310 billion bids. The auction committee accepted PHP40 billion.
Its bid coverage ratio, thus, went up to 1.3064 from 1.0828 during the auction last March 7.
Yield of the 28-day facility, on the other hand, inched up to 3.3274 percent from 3.2627 percent last week.
Banks submitted PHP22.735 billion worth of bids, higher than the PHP20 billion offering but lower than last week’s PHP23.520 billion offering — thus, the decline in bid coverage ratio to 1.1368 from 1.1769 percent last week.
BSP Department of Economic Research (DER) Deputy Director Dennis Lapid said the recent uptick of rates can be attributed partly to increased attractiveness of the TDF after the BSP hiked volume offering.
“With the larger volume we’re able to accept more bids at the top…At the same time we saw higher bids also from the banks,” he said.
For the auction on March 21, the seven-day facility will still be offered for PHP50 billion, the 14-day facility for PHP40 billion and the 28-day facility for PHP20 billion. (PNA)
