THE P180-billion worth of term deposits auctioned by Bangko Sentral ng Pilipinas on Wednesday were undersubscribed by P9.2 billion as investors’ sluggish demand for the month-long instruments offset the strong appetite for week-long deposits.
Data posted on the BSP website showed total tenders reached P170.799 billion, lower than the weekly volume of P180 billion.
The seven-day term deposits worth P40 billion lured total bids of P65.46 billion and fetched a weighted average accepted yield of 3.13 percent. The month-long deposits worth P140 billion attracted total tenders of just P105.339 billion and had a weighted average accepted yield of 3.46 percent.
Bangko Sentral officials earlier noted a continued strong demand for the week-long instruments as banks found their relatively high rate more attractive.
They also blamed the successful issuance of retail treasury bonds by the Bureau of the Treasury for investors’ less appetite for the month-long term deposits.
The Bureau of the Treasury in April raised P175 billion from its latest issuance of three-year retail treasury bonds, including those generated from roadshows conducted nationwide.