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Demand for term deposits continue weakening

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The TDF is the central bank’s main tool to capture excess liquidity in the financial system by allowing financial firms to place their idle money under the facility for a small margin. File photo of peso bills. BW

Demand for term deposits grew even weaker yesterday, with banks crowding the week-long tenor as they take a wait-and-see stance on developments in the financial markets.

Bids for the term deposit facility (TDF) reached P100.634 billion on Wednesday, just matching the P100 billion offered by the Bangko Sentral ng Pilipinas (BSP).

Last week, bids for the TDF reached P113.158 billion, above the P100 billion offering of the BSP but lower from the P120.72 billion tenders received the week before. — Melissa Luz T. Lopez