Preference for the short-dated term deposit facility (TDF) offered by the Bangko Sentral ng Pilipinas was sustained Wednesday with yields going down further.
For comparison, the longer tenor remained undersubscribed on higher rates.
For the P40 billion in seven-day TDF, tenders reached P40.836 billion, making the facility oversubscribed for the fourth straight week.
The yield for the one-week term deposits went down to the 3.28-3.35 percent range from 3.3-3.35 percent last week.
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On the other hand, bids for the P140 billion in 28-day TDF amounted just P117.335 billion, which the BSP all awarded. The yield for the one-month facility further rose to 3.45-3.5 percent from 3.44-3.5 percent a week ago.
“We expect this turnout based on the trend of banks’ preference to increase their lending to both their individual and corporate clients,” BSP Deputy Governor Diwa C. Guinigundo told reporters.
