WEAK demand from investors resulted again in the undersubscription of the month-long term deposits offered by Bangko Sentral ng Pilipinas in its weekly auction on Wednesday.
Data showed the 28-day P140 billion worth of term deposits attracted bids of just P113.97 billion and fetched a weighted average accepted yield of 3.45 percent.
The week-long P40-billion deposits, meanwhile, drew total bids of P65.50 billion with a weighted average accepted yield of 3.3 percent.
The auction resulted in total bids of P179.47 billion, or P53 million short of the total weekly volume of P180 billion.
Bangko Sentral Governor Amando Tetangco Jr. cited a strong demand for the 7-day tenor over the 28-day tenor as banks found the relatively high rate for the 7 days attractive.
“BSP will continue to monitor bank liquidity positions as some reported that there is lower appetite for the 28 days as they are still refining positions after the long weekend,” Tetangco said in a text message.
