MANILA – The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose across-the-board last week and banks have submitted bids higher than the offering, even before the long weekend.
Data released by the BSP showed the rate of the seven-day TDF improved to 4.7249 percent from 4.7196 percent during the auction last Oct. 24.
This tenor was offered for P40 billion, and tenders at P44.325 billion, which was lower than the P53.642 billion submitted by banks in last week’s auction. This was fully awarded.
Its bid coverage ratio also improved to 1.1081.
The rate of the 14-day facility inched up to 4.7631 percent from 4.7553 percent.
This facility was offered for P20 billion and received tenders amounting to P23.425 billion, also lower than last week’s P28.506 billion.
Bid coverage ratio went up to 1.1713 from last week’s 1.4253.
Relatively, the rate of the longest tenor TDF went up to 4.8798 percent from last week’s 4.8493 percent.
Banks submitted a total of P13.913 billion worth of bids, higher than the P10-billion offering but lower than the P18.665 billion tenders last week. The auction committee made a full award.
The lower bids submitted by banks in this week’s TDF auction was expected given the long weekend.
Monetary officials said banks prefer to hold on to their cash during the holidays to be able to cater to their clients’ requirements.
For the Nov. 7 auction, the seven-day facility will be offered for P50 billion, the 14-day facility for P30 billion, and the 28-day TDF for P20 billion. (PNA)
