• Term deposit rates drop
The term deposit auction facility (TDF) of the Bangko Sentral ng Pilipinas fetched lower rates yesterday but remained undersubscribed.
Tenders for seven- and 28-day term deposits finished below the P150-billion offering at P107.375 billion.
Bids for the shorter-dated term deposits reached P27.785 billion, lower than the offer size of P40 billion, while the longer-dated term deposit offering of P110 billion only attracted P79.59 billion worth of tenders.
The seven-day term deposits fetched a yield of 3.3678 percent from last week’s 3.3765 percent with accepted rates ranging from 3.3 to 3.4 percent.
The yield of the 28-day term deposits, on the other hand, decreased to 3.4907 from 3.495 percent as accepted yields ranged between 3.449 percent to 3.5 percent.
The BSP has said that term deposits remained undersubscribed as banks continued to shift excess funds to loans and other investment instruments in search of higher yields.
Meanwhile, the BSP said TDF auction date and tenor for next week, Oct. 25, and Nov. 2 are being adjusted in view of the declared holiday on Nov. 1.
The shorter-dated term deposits for Oct. 4, will have a seven-day tenor with a P40 billion volume, while the longerdated term deposits will have a 29-day term for a P100 billion offering.