The P180-billion term deposit facility (TDF) again failed to draw enough bids for the longer tenor during the last auction for the year as seasonal factors continued to weigh on the weekly auction.

Rajiv Biswas, Asia-Pacific chief economist for IHS Markit said the undersubscription likely reflected several factors, “including seasonal factors as banks retain high levels of cash to provide liquidity for the holiday season over Christmas and New Year, as well as the implementation of a phased transition toward new regulations that will restrict trust accounts from BSP deposit facilities.”

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