MANILA -- The rate of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) rose across-the-board Wednesday, a day before the Monetary Board (MB) meets, presumably to deliberate on a proposal to hike key rates even further.
Data released by the BSP showed that rate of the seven-day facility rose to 3.7797 percent from 3.7405 percent last week.
Also, rate of the 14-day facility went up to 3.9234 percent from the previous week’s 3.9016 percent and the the 28-day facility to 3.9620 percent from 3.9605 percent.
Analysts are anticipating the MB to further raise the central bank’s key rates on Thursday as inflation ticked-up anew last July to 5.7 percent from month-ago’s 5.2 percent.
To date, inflation averaged at 4.5 percent, higher than the government’s two to four percent target until 2020.
Amid the rise of TDF interest rates, bid coverage ratio posted a mix, with that of the shortest tenor up while the those of the other two went down.
Demand for the shortest tenor facility was high after banks submitted a total of Php65.44 billion worth of bids, higher than the Php40 billion offering and the Php51.935 billion during the auction last week.
Thus, bid coverage ratio of this tenor went up to 1.6360 from 1.2984 last week.
On the other hand, bid coverage ratio of the 14-day facility declined to 0.8321 from last week’s 1.2450.
This after tenders reached Php33.285 billion, lower than the Php40 billion offering and last week’s Php49.801 bids.
Also, bid coverage ratio of the longest tenor facility slipped to 0.5730 from 0.9472 in the previous week’s auction.
Total tenders for this facility reached Php11.46 billion, lower than the Php 20 billion offering and the Php18.943 billion last week. (PNA)
