7-day TDF rate slides anew; 14-, 28-day rates rise

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MANILA – Upticks were registered on the rates of Bangko Sentral ng Pilipinas’ (BPS) 14- and 28-day term deposit facility (TDF) after several months of decline but rate of the seven-day tenor sustained its drop.

Data released by the central bank Wednesday showed that the average rate of the seven-day facility went down to 1.7538 percent from 1.7573 percent during the auction last July 1.

BSP offered this tenor for PHP120 billion and received tenders amounting to PHP211.7 billion.

Bid coverage ratio also went down and ended the auction at 1.7642 from last week’s 1.9358 when the same offer volume was met with PHP232.3 billion worth of bids.

On the other hand, the rate of the 14-day TDF rose to 1.7548 percent and the 28-day to 1.7578 percent.

These were at 1.7522 percent and 1.7562 percent for the 14- and 28-day, respectively, during the previous week’s auction.

The BSP offered the mid-tenor facility for PHP90 billion and attracted PHP172.245 billion worth of tenders. The auction committee made a full award.

Bid coverage ratio slipped to 1.9138 from last week’s 2.1383 when this facility was offered for PHP70 billion and received bids amounting to PHP149.68 billion.

The longest tenor TDF was offered this week for PHP40 billion, higher than last week’s PHP20 billion.

Tenders amounted to PHP99.262 billion, higher than the PHP59.651 billion last week. This was fully awarded also this week.

This resulted in the decline of the bid coverage ratio to 2.4816 from last week’s 2.9826.

BSP Department of Economic Research (DER) Director Dennis Lapid said the average interest rate of the shortest tenor TDF slipped by 0.35 basis points, while those of the 14-day and 28-day jumped by 0.25 basis points and 0.16 percent basis points, respectively.

He said results of this week’s auction “reflect continued strong market interest for the BSP’s deposit facilities, with preference toward longer-tenor TDF, amid ample liquidity conditions in the financial system.”

“Looking ahead, the BSP will remain guided by its assessment of prevailing market conditions and financial liquidity in determining the volume and tenors of its TDF operations,” he added. (PNA)

Photo Credit: Philippine News Agency

The Philippine News Agency is a web-based newswire service of the Philippine government under the supervision of the News and Information Bureau (NIB) of the Presidential Communications Office (PCO).

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