As funds returned to banks after the vacation season, the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) public sale Wednesday attracted tenders that exceeded the whole offering by over a fifth.

For the P30 billion in seven-day term deposits supplied by the BSP, a complete of P49.208 billion was tendered. The BSP totally awarded the one-week facility at a yield of Three-Three.0995 p.c.

As for the P150 billion in 28-day TDF, bids reached P172.051 billion. The yield for the one-month term deposits was throughout the vary of two.6-Three.4875 p.c.

“We continue to see oversubscription on both tenors as funds go back to the banking system after the holidays. We noticed the decrease in average rates for both tenors from last week’s auction (seven-day to 3.0465 percent from 3.0722 percent; 28-day to 3.357 percent from 3.3778 percent) as banks try to invest their excess funds,” BSP Governor Amando M. Tetangco Jr. stated in a textual content message to reporters.

The BSP will once more provide the identical quantity of term deposits on Jan. 18 and 25.

Tetangco famous that “there continues to be demand for the shorter-dated papers,” which “was also reflected in the oversubscription and tap of the three-year bond auction by the Bureau of the Treasury.”

Tetangco was referring to the Treasury’s offering additionally on Wednesday of the over-the-counter or faucet facility for P15 billion in new T-bonds amid sturdy demand for the debt paper throughout Tuesday’s public sale.

The Treasury’s first public sale for 2017 was twice oversubscribed, as tenders reached P37.238 billion for the preliminary P15 billion. It was ultimately awarded a charge of three.364 p.c. —BEN O. DE VERA

Source: inquirer