MANILA -- The rise in the rates of Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) continued Wednesday but offering for next week’s auction was cut for the longer tenors.
Data released by the central bank showed that rate of the seven-day facility went up to 4.3744 percent from last week’s 4.3218 percent; the 14-day facility to 4.4224 percent from 4.4123 percent; and the 28-day facility’s to 4.4824 percent from 4.4515 percent.
On the other hand, bid coverage ratio of the facilities ended with mixed directions.
Bid coverage ratio of the seven-day and 14-day facilities rose to 0.9500 from last week’s 0.7990 and the 14-day to 1.1237 from 1.0669 last September 5.
This, after tenders for the shortest tenor rose to PHP38.001 billion from last week’s PHP31.958 billion. These bids, however, are below the PHP40 billion offering.
The mid-tenor TDF attracted PHP44.949 billion bids, higher than the PHP40 billion offering and last week’s PHP42.674 billion tenders.
On the other hand, bid coverage ratio of the longest tenor facility slipped to 0.5089 from 1.0335 in last week’s auction. Tenders amounted to PHP10.178 billion, lower than the PHP20 billion offering and last week’s PHP20.670 billion bids.
For the auction on Sept. 19, the shortest tenor facility will be offered for PHP40 billion, same as this week’s volume.
Meanwhile, offering for the 14-day and 28-day TDF was cut to PHP20 billion and PHP10 billion, respectively, from PHP40 billion and PHP20 billion this week.
“Based on BSP liquidity forecast, TDF demand would be reduced because of tighter peso liquidity due to BSP foreign exchange market operations,” BSP Governor Nestor A. Espenilla Jr. said. (PNA)
