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Term deposits fetch lower yields on inflation, BSP easing bets

Business World Philippines

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December 04, 2025

THE BANGKO SENTRAL ng Pilipinas’ (BSP) seven-day term deposits fetched a lower average rate on Wednesday on strong demand and expectations of benign November inflation that would lead to further monetary easing.

- Katherine K. Chan

Term deposits fetch lower yields on inflation, BSP easing bets

The central bank’s term deposit facility (TDF) attracted bids amounting to P135.643 billion, above the P80-billion offer and the P128.312 billion in tenders for the same offer volume in the previous auction. The BSP made a full award of its offer.

Accepted yields for the seven-day tenor were from 4.6% to 4.7408%, narrower than the 4.6% to 4.7497% seen last week. This caused the average rate of the one-week deposits to slip by 0.94 basis point (bp) to 4.728% from 4.7374%.

Wednesday marked the fifth week in a row that the central bank did not offer the 14-day tenor at its TDF auction.

Also, it has not auctioned off 28-day term deposits since October 2020 to give way to its weekly offerings of securities with the same tenor.

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