MANILA -- Rates of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) posted mixed results on Wednesday as banks continue to weigh their options vis-à-vis the impact of latest economic developments here and abroad.
Data released by the central bank showed that average rate of the seven-day facility increased to 3.7586 percent from 3.7537 percent in last week’s auction.
Bid coverage ratio of the shortest tenor, however, went down to 1.184 from the previous week’s 1.2346 after banks submitted Php47.372 billion worth of bids, higher than the Php40 billion offering but lower than last week’s Php49.382 billion.
Rate of the 28-day TDF also went up and hit 3.9416 percent from last week’s 3.9346 percent.
Similar to the seven-day facility, bid coverage ratio of the longest tenor declined and registered at 1.1991 for the week from 1.4117 during the July 11, 2018 auction. This, after tenders amounted to Php23.982 billion, higher than the Php20 billion offering but lower than last week’s Php28.234 billion.
Meanwhile, average rate of the 14-day facility went down to 3.9220 percent from last week’s 3.9258 percent.
Bids, however, rose to Php57.485 billion from last week’s Php51.390 billion. This resulted to the uptick in the bid coverage ratio to 1.4371 from 1.2848 in the previous auction.
Monetary officials have repeatedly said that the facility remains attractive since it gives banks an additional option for placing their funds.
However, rates and bid coverage ratios continue to fluctuate as a result of bank officials’ assessment on the impact of current economic developments. (PNA)
