BSP ups 7, 14-day TDF offerings

By Joann Villanueva

October 3, 2018, 8:04 pm

MANILA – The Bangko Sentral ng Pilipinas (BSP) on Wednesday announced a higher offering for the seven-day and 14-day Term Deposit Facility (TDF) auction on October 10.

Data released by the central bank showed that offer volume for the shortest tenor TDF was hiked to PHP50 billion from PHP40 billion this week and the 14-day facility to PHP20 billion from PHP10 billion this week.

On the other hand, offering for the 28-day facility remains at PHP10 billion.

Monetary officials said changes in the TDF volume offering depends on their outlook on liquidity in the coming days.

In the past, the BSP cut TDF offering ahead of holidays as banks are expected to submit lower tenders to remain liquid, thus, better able to cater to their clients’ requirements for cash.

Meanwhile, rates of all TDF tenors rose further during Wednesday's auction as banks demanded higher rates following the 150 basis point increase in the BSP’s key rates.

Weighted average accepted yield of the seven-day facility improved to 4.7127 percent from 4.4215 percent last week.

This tenor attracted PHP77.305 billion worth of tenders, higher than the PHP40 billion offering, thus, the full award.

Bid coverage ratio also went up to 1.9326 from 1.2907 last week.

The 14-day facility’s interest increased to 4.7353 percent from 4.4722 percent during the auction last September 26.

It was offering for PHP10 billion but tenders were more than two-folds at PHP27.220 billion. The auction committee made a full award.

Also, yield of the 28-day facility inched up to 4.7884 percent from 4.4877 percent last week.

It was offered for PHP10 billion and bids reached PHP26.505 billion. The auction committee awarded based on offering.

Bid coverage ratio improved to 2.6505, a big jump from the 0.4585 last week. (PNA)