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Yields on term deposits drop before BSP review
Business World Philippines
|February 19, 2026
THE BANGKO SENTRAL ng Pilipinas’ (BSP) one-week term deposits fetched lower yields on Wednesday as the offer attracted strong demand on expectations of another rate cut this week.
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Total bids for the seven-day term deposit facility (TDF) stood at P124.877 billion, exceeding the P90 billion auctioned off by the BSP but below the P132.961 billion in tenders for the P110 billion offered a week ago.
This translated to a bid-to-cover ratio of 1.3875 times, higher than the 1.2087 ratio recorded last week.
As a result, the BSP made a full P90-billion award of its TDF offering.
Accepted rates were from 4.45% to 4.495%, a tad narrower than the 4.45% to 4.505% band seen during the previous auction. This caused the weighted average accepted yield of the one-week deposits to go down by 1.29 basis points (bps) week on week to 4.4794% from 4.4923%.
“The BSP TDF average auction yield continued to slightly ease a day before the widely expected 25-bp rate cut at the next BSP rate-setting meeting on Feb. 19,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
This story is from the February 19, 2026 edition of Business World Philippines.
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