THE P180-billion worth of term deposits offered by Bangko Sentral ng Pilipinas on Wednesday was undersubscribed due to seasonality and some cautiousness from market players.
Data showed that total tenders for the weekly volume of P180-billion reached just P148.839 billion. The week-long P30-billion worth of deposits remained oversubscribed, luring total tenders of P37.806 billion. However, the 28-day P150-billion deposits attracted total bids of just P111.033 billion and Bangko Sentral opted to award only P110.168 billion.
“It was clear from the beginning and the market knows this that any bid outside the corridor will not be accepted. Please recall that IRC was designed to guide market rates closer to the policy rate. Throw away bids send black noise and those cannot be useful in guiding market rates,” Deputy Governor Diwa Guinigundo said in a statement Wednesday.