MANILA -- The rate of the Bangko Sentral ng Pilipinas’ (BSP) Term Deposit Facility (TDF) rose anew Wednesday although banks submitted lower-than-accepted bids for the seven-day facility.
Data released by the central bank showed that the rate uptick is for all the three tenors, with the seven-day’s weighted average accepted bid at 4.3218 percent from last August 29’s 4.2878 percent.
The rate of the 14-day facility improved to 4.4123 percent from 4.3892 percent in last week’s auction.
The average rate of the 28-day facility rose to 4.4515 percent from last August 28’s 4.4105 percent.
While rates increased across-the-board Wednesday, bid coverage ratio fell for all tenors.
Bid coverage ratio of the shortest tenor facility fell to 0.7990 from 1.0953 last week.
Tenders for the facility is lower than the PHP40 billion offering after it only amounted to PHP31.958 billion, which is also lower than the PHP43.811 billion last week.
The 14-day facility’s bid coverage ratio slid to 1.0669 from last week’s 1.2313.
Tenders amounted to PHP42.674 billion, higher than the PHP40 billion offering but lower than the bids last week amounting to PHP49.250 billion.
Bids for the longest tenor TDF reached PHP20.67 billion, higher than the PHP20 billion offering but lower than the PHP23.335 billion tenders last week.
TDF rates have been on the rise following the hike in the BSP’s key rates last month. (PNA)
