YIELDS on the term deposits offered by the Bangko Sentral ng Pilipinas (BSP) inched lower on Wednesday amid dovish signals from the US Federal Reserve chief, which boosted rate cut expectations in the world’s largest economy. The central bank’s term deposit facility (TDF) attracted bids amounting to P250.521 billion on Wednesday, below the P260 billion on the auction block and the P268.
701 billion for a P250-billion offer seen a week ago as the longer tenor went undersubscribed. Broken down, tenders for the seven-day papers reached P132.134 billion, higher than the P120 billion auctioned off by the central bank but lower than the P134.
407 billion in bids for the P130-billion offering seen the previous week. Banks asked for yields ranging from 6.49% to 6.
525%, slightly lower than the 6.495% to 6.53% band seen a week ago.
This caused the average rate of the one-week deposits to slip by 0.06 basis point (bp) to 6.5099% this week from 6.
5105% previously. Meanwhile, bids for the 14-day term deposits amounted to P118.387 billion on Wednesday, lower than the P140-billion o f fering as well as the P134.
294 billion in tenders for the P120 billion placed on the auction block on July 10. Accepted rates for the two-week tenor were from 6.5245% to 6.
568%, a tad wider than the 6.535% to 6.569% margin seen a week ago.
With this, the average rate for the 14-day term deposits decreased by 0.83 bp to 6.5463% from the 6.
5546% logged in the prior week’s auction. The BSP has not auctioned o.