P100-billion deposit auction undersubscribed—BSP

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.

Topics: term deposits , Bangko Sentral ng Pilipinas , weak demand , Governor Nestor Espenilla Jr.
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementGMA-Congress Trivia 1