TDF rates post mixed results on Wednesday auction

By Joann Villanueva


MANILA – Bids for Bangko Sentral ng Pilipinas’ (BSP) term facilities continue to surpass the offered volume but rates posted mixed results Wednesday.

Data released by the central bank showed that the average rate of the seven-day Term Deposit Facility (TDF) went down to 4.5466 percent from 4.5537 percent during the auction last July 3.

Its bid coverage ratio also declined after finishing at 1.3910 from 2.5420 in the previous auction. This, after the PHP20 billion offer was met by PHP27.82 billion.

Last week, banks submitted more than twice the PHP10-billion offer at PHP25.42 billion.

Also, the rate of the 14-day facility slid to 4.5931 percent from 4.6129 percent last week.

Its bid coverage ratio went down to 1.6683 from 2.2095 in the previous auction.

Total bids amounted to PHP33.365 billion, higher than the PHP20-billion offer but not more than twice compared to the previous week.

Last July 3, BSP offered the mid-tenor TDF for PHP10 billion but banks submitted a total of PHP22.095 billion worth of bids.

On the other hand, the rate of the 28-day facility rose to 4.6407 percent from the previous week’s 4.6347 percent.

However, its bid coverage ratio went down to 1.1320 from 2.0033 after banks submitted PHP22.64 billion worth of tenders, higher than the PHP20 billion offer but also not more than twice compared to last week.

The longest-tenor TDF was offered for PHP10 billion last July 3 and bids totaled to PHP20.033 billion.

Earlier, BSP Governor Benjamin Diokno said people should not worry about fluctuations in the bids since these depend on the liquidity situation right before the auction.

Thus, the BSP reduced the announcement period for offer volume to two days from one week before the auction, to give it a greater grasp on the liquidity situation for the week. (PNA)


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