On the other hand, the rate of the 14-day term deposits further climbed 1.19 basis points to a record high level of 5.0715 percent from 5.0596 percent last week. The yields of term deposits started to normalize after the Monetary Board further raised benchmark rates by another 25 basis points last Nov. 15 as a proactive action to rein in inflationary pressures. Bids for the P40 billion seven-day term deposits only reached to P28.89 billion, while the 14-day tenor was also undersubscribed at P19.84 billion versus the offer size of P20 billion. On the other hand, the 28-day term deposits were slightly oversubscribed as bids amounted to P10.7 billion versus the P10-billion volume. Hence, they need to deploy them even at lower yields,” Guinigundo said.

Source: Philippine Star November 28, 2018 16:02 UTC