Banks continued to prefer the short-dated term deposit facility (TDF) auctioned off by the Bangko Sentral ng Pilipinas (BSP) Wednesday while the longer tenor remained undersubscribed.
For the P40 billion in seven-day TDF, tenders reached P60.818 billion, such that the facility was oversubscribed for the second straight week.
The accepted yield for the one-week term deposits further increased to 3.3 to 3.375 percent from 3.25 to 3.4 percent last week.
But bids for the P140-billion 28-day facility amounted just P119.356 billion, which the BSP all awarded.
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The yield for the one-month TDF still ranged within 3.425-3.5 percent, the same as last week’s range.
Last week, BSP Deputy Governor Diwa C. Guinigundo said the oversubscribed seven-day and undersubscribed 28-day TDF were “very much expected as the transitory factors that led to heavy undersubscriptions have receded,” referring to the auctions last month.
