BSP’s P90-B term deposit offering oversubscribed

Tenders for the P90 billion in term deposits offered by the Bangko Sentral ng Pilipinas (BSP) Wednesday were again oversubscribed such that monetary authorities are planning to further jack up the volume of future offerings.

Banks and trust institutions tendered a total of P228.8 billion—P187.5 billion for the P80 billion in 28-day term deposits, and P41.3 billion for the P10-billion seven-day facility.

For the 28-day facility, the BSP accepted a yield ranging from 2.5 to 2.525 percent, while the accepted yield remained at 2.5 percent for the seven-day facility.

“The results of today’s auction are consistent with our expectation of a gradual narrowing of the gap between the TDF rate and our policy rate. We will continue to review the auction size with the view towards further scaling up the TDF operations going forward,” BSP Governor Amando M. Tetangco Jr. said in a message to reporters.

“As you will note, the bid to cover ratio has tipped slightly, indicating there is room to do so. We will include these observations at our next policy meeting,” Tetangco added. The Monetary Board will tackle this at its meeting on Sept. 22.

The BSP will also offer P90 billion—P10 billion in seven-day term deposits and P80 billion in 28-day—on Sept. 21 and 28, the latest advisory on its website showed.

Operational adjustments had been implemented by the BSP ahead of the implementation of the IRC.