THE P110 billion worth of term deposits offered by Bangko Sentral ng Pilipinas on Wednesday remained oversubscribed despite the sluggish demand for the 14-day instruments.
Data showed investors swarmed both the week-long and month-long deposits, resulting in total tenders of P123 billion, or P13 billion more than the weekly volume of P110 billion.
The P50-billion seven-day deposits attracted total bids of P65.13 billion and fetched a weighted average accepted yield of 3.26 percent. The 28-day deposits worth P20 billion attracted total tenders of P29.24 billion.
But the 14-day instruments amounting to P40 billion had a total bid of just P29.93 billion.
“Liquidity is coming back to the banks hence the oversubscription. However, given the tax season in less than 14 days, the demand for the 14-day TDF temporarily stalled. But these results are consistent with the BSP’s liquidity forecasts for the week,” Bangko Sentral deputy governor Diwa Guinigundo said in a statement.