Term deposit yields slip on bets of more BSP cuts

YIELDS on term deposits went down on Wednesday on expectations of further policy easing by the Bangko Sentral ng Pilipinas (BSP) amid benign inflation.

- — K.K. Chan

The central bank’s term deposit facility (TDF) fetched a total of P117.295 billion in bids, below the P190 billion placed on the auction block but higher than the P103.771 billion in tenders recorded for the P100 billion offered a week earlier. The BSP only awarded P106.69 billion in papers as the one-week tenor went undersubscribed again after the increase in the offer volume.

Broken down, tenders for the seven-day deposits were at P60.19 billion, well below the P140 billion placed on the auction block, but higher than the P38.846 billion in bids recorded for the P50-billion offer the prior week. However, the central bank awarded only P56.69 billion in one-week papers.