Term deposit rates ease across the board

MANILA, Philippines — The yields of term deposits eased across the board yesterday as banks continued to swarm the weekly term deposit auction facility (TDF) of the Bangko Sentral ng Pilipinas (BSP).

The seven-day tenor fetched a lower rate of 5.1248 percent yesterday from last week’s 5.1565 percent, while the yield of the 14-day term deposits eased to 5.1659 percent from 5.1828 percent.

Likewise, the 28-day term deposits also dropped to 5.1822 percent from 5.1839 percent last week.

The central bank’s liquidity absorption facility was oversubscribed yesterday with tenders for the three tenors reaching P80.9 billion versus the issue size of P50 billion

Both the seven- and 14-day tenors were heavily oversubscribed while the longer-dated 28-day term deposits were slightly undersubscribed.

Tenders for the P20-billion seven-day term deposits reached P38.12 billion, while the bids for the 14-day tenor reached P33.59 billion versus the P20 billion offering.

On the other hand, the 28-day tenor was undersubscribed as bids amounted to P9.19 billion versus the offer size of P10 billion.

BSP Deputy Governor Diwa Guinigundo earlier said domestic liquidity remains ample as banks continued to swarm the weekly auction as shown by the oversubscriptions.

Liquidity remains ample amid the plan of the Bureau of the Treasury (BTr) to issue retail treasury bonds (RTBs) to cover the maturing debt of the national government.