TDF rates sustain rise

MANILA — Rates of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facilities (TDFs) rose across-the-board Wednesday while bid coverage ratio fell due to undersubscription in two of the three tenors.

Data released by the central bank showed that the rate of the seven-day facility improved to 4.7442 percent from 4.7249 percent Wednesday last week.

On the other hand, its bid coverage ratio dropped to 1.0034 from 1.1081.

This, after banks submitted tenders amounting to PHP50.170 billion, a little higher than the PHP50 billion offering. Last week, this facility was offered for PHP40 billion and tenders reached PHP44.325 billion.

Weighted average accepted yield of the 14-day TDF rose to 4.7890 percent, higher than the 4.7631 percent in the previous auction.

Its bid coverage ratio, meanwhile, declined to 0.9854 percent from 1.1713 percent last week.

BSP offered this for PHP30 billion and tenders amounted to PHP29.563 billion. Last week, this facility was offered for PHP20 billion and bids reached PHP23.425 billion.

The 28-day facility’s average rate inched up to 4.9010 percent from 4.8798 percent.

Its bid coverage ratio declined to 0.8084 from 1.3913 in the previous auction after the PHP20-billion offering attracted only PHP16.168 billion tenders.

TDF rates have been on the rise in line with the increase of domestic interest rates. (Joann Villanueva/PNA)

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