TDF rates rise across-the-board

By Joann Villanueva

April 25, 2018, 5:46 pm

MANILA -- Rates of all tenors of the Bangko Sentral ng Pilipinas’ Term Deposit Facility (TDF) rose Wednesday, even after undersubscription was posted by the 28-day facility.
Data released by the central bank showed that rate of the seven-day TDF going up to 3.4397 percent from 3.3967 percent in last week's auction last.

Offer volume was cut by PHP10 billion to PHP40 billion for this week ahead of the May 1 (Labor Day) and May 14 (local election) holidays, which monetary officials expect to lessen banks’ risk-on sentiment on the TDF.

Banks still submitted PHP47.031 billion worth of tenders for the shortest-tenor facility after which the auction committee made a full award.

Bid coverage ratio of this facility rose to 1.1758 from last week’s 1.0089.

Rate of the 14-day TDF improved to 3.4648 percent from last week’s 3.4370 percent.

It was offered for PHP30 billion, down from last week’s PHP40 billion. Banks offered a total of PHP31.297 billion worth of bids and the auction committee accepted PHP30 billion.

Its bid coverage ratio inched up to 1.0432 from 0.9538.

Interest rate of the longest tenor facility increased to 3.4574 percent from 3.4097 percent in the auction last April 18.

Bids amounted to PHP17.934 billion, lower than the PHP20 billion offering. The auction committee accepted all the bids.

With the lower-than-offered tenders, the facility’s bid coverage ratio went down to 0.8967 from last week’s 1.1737. (PNA)