TDF rates rise despite undersubscription

MANILA – The rates of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose Wednesday.
Data released by the central bank showed that the average rate of the seven-day facility increased to 1.6742 percent from last week’s 1.6332 percent.
The average rate of the 14-day facility increased to 1.8544 percent from 1.7804 percent during the auction last March 3.
The BSP lowered the offering for both tenors this week, with the total at PHP540 billion from last week’s PHP600 billion.
Specifically, the seven-day facility was offered for PHP190 billion but it was undersubscribed after tenders only amounted to PHP145.424 billion.
The auction committee accepted all the bids.
This resulted in a bid coverage ratio of 0.7654, lower than last week’s 1.1402 when this tenor was offered for PHP200 billion and bids reached PHP228.031 billion.
Tenders for the longer-tenor facility reached PHP378.345 billion, higher than the PHP350-billion offer. This was fully awarded.
The bid coverage ratio stood at 1.0810, higher than the 1.0443 last week when this facility was offered for PHP400 billion and tenders amounted to PHP417.723 billion. (PNA)

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