The P100 billion worth of term deposits offered by the Bangko Sentral ng Pilipinas on Wednesday was undersubscribed due to weak demand for long-tenor instruments.
Data showed total tenders for the instruments reached just P92.63 billion, or P7.37 billion short of the weekly volume.
Investors preferred the seven-day instruments worth P40 billion, as total bids reached P45.831 billion. However, the 14-day deposits worth P40 billion was undersubscribed after total tenders hit P31.99 billion.
The 28-day deposits amounting to P20 billion, meanwhile, attracted bids of just P14.81 billion.
The Bangko Sentral reduced the weekly volume of the TDF auction on June 6, 2018 to P100 billion from the previous volume of P110 billion.
Bangko Sentral Governor Nestor Espenilla Jr. earlier said the market should not be surprised every time the regulator reduced the weekly volume in view of the liquidity requirement of the financial system.