After going full throttle for the record-high volume of retail treasury bonds (RTBs), market appetite went tepid for the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF).
Although the central bank already slashed its offering to P80 billion, the 28-day tenor of the facility, in particular, remained undersubscribed on Wednesday.
Bids for the longest tenor in that financing window attracted only P32.48 billion, albeit the BSP offered a total of P40 billion. The BSP awarded a yield of 3.47-3.5 percent.
For the seven-day TDF, banks tendered P41.269 billion. The BSP fully awarded the P40 billion it offered at 3.3-3.5 percent yield.
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“Lower TDF subscription means bank funds are deployed to lending, foreign exchange purchases, and investment in government securities, including RTBs,” BSP Deputy Governor Diwa C. Guinigundo said in a text message to reporters.
The Bureau of the Treasury raised P255.4 billion from its sale of RTBs to small investors.
