Term deposit rates up on oversubscription
Term deposits fetched higher rates across the board as banks continued to park their excess funds in the liquidity absorption facilities of the Bangko Sentral ng Pilipinas (BSP).
BSP Deputy Governor Diwa Guinigundo said domestic liquidity remains ample as banks continued to swarm the weekly term deposit auction facility (TDF).
“This is clearly shown by the oversubscriptions across all tenors. Liquidity obviously derived from sustained reflow to the banks after the long holiday season and the sustained disbursement by the
national government including its infra executing departments,” he said.
The central bank’s liquidity absorption facility was oversubscribed yesterday with tenders for the three tenors reaching P68.09 billion versus the issue size of P50 billion
Tenders for the P20-billion sevenday term deposits reached P28.08 billion as banks swarmed the shorter-dated tenor, while the bids for the 14day tenor reached P27.26 billion versus the P20 billion offering.
Likewise, the 28-day tenor was oversubscribed as bids amounted to P12.75 billion versus the offer size of P10 billion.
Guinigundo said liquidity remains ample amid the plan of the Bureau of Treasury (BTr) to issue retail treasury bonds (RTBs) to cover the maturing debt of the national