MANILA — The rates of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) rose across-the-board anew Wednesday, in step with the trend of domestic interest rates.
Data released by the central bank showed that the average rate of the seven-day facility went up to 4.2878 percent from 4.2069 percent during the auction last week.
The rate of the 14-day facility rose to 4.3892 percent from 4.2976 percent and the 28-day TDF to 4.4105 percent from the previous auction’s 4.3590 percent.
On the other hand, the facilities registered mixed results for their bid coverage ratio.
Those of the seven-day and 14-day TDF increased to 1.0953 and 1.2313. These were previously at 1.0542 and 0.9472 for the shortest and the middle tenor facilities.
These transpired as both tenors received tenders that are more than the offering.
BSP offered the seven-day facility for PHP40 billion and banks submitted PHP43.811 billion worth of bids, higher than the PHP42.169 billion tenders last week. The auction committee accepted PHP40 billion.
Tenders for the 14-day facility reached PHP49.250 billion, higher than the PHP40 billion offering and last week’s PHP37.887 billion bids. The auction committee also accepted based on offering.
It was a different story for the longest tenor facility after tenders reached PHP23.335 billion, lower than the PHP26.683 billion last week but higher than the PHP20 billion offering. The auction committee accepted PHP20 billion.
TDF rates have been on the rise following Philippine monetary authorities’ decision to hike the BSP’s key interest rates last July as inflation continues to post upticks.
BSP Governor Nestor A. Espenilla Jr. has assured markets that monetary officials are prepared to increase key rates further if the need arises. (Joann Villanueva/PNA)
