For the second straight week, both tenors of the term deposits offered by the Bangko Sentral ng Pilipinas (BSP) yesterday were undersubscribed as banks, according to a top official, were lending more.
For the P40-billion seven-day term deposit offering, tenders reached only P35.05 billion, which were all accepted by the BSP.
The yield for the one-week TDF further rose to 3.15-3.45 percent from 3.1-3.39 percent last week.
The bids for the P140-billion 28-day facility offering, meanwhile, amounted to only P106.19 billion.
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The accepted yield for the one-month term deposits inched up to a range of 3.425-3.5 percent from last week’s 3.4-3.5 percent.
According to BSP Deputy Governor Diwa C. Guinigundo, the TDF auction results “continue to demonstrate that: One, banks have been funding more loans and investment in government securities; and two, short-dated placements are preferred by the market.”
