According to one aspect of the present disclosure, a method and technique for encoding densely packed decimals is disclosed. The method includes: executing a floating point instruction configured to perform a floating point operation on decimal data in a binary coded decimal (BCD) format; determining whether a result of the operation includes a rounded mantissa overflow; and responsive to determining that the result of the operation includes a rounded mantissa overflow, compressing a result of the operation from the BCD-formatted decimal data to decimal data in a densely packed decimal (DPD) format by shifting select bit values of the BCD formatted decimal data by one digit to select bit positions in the DPD format.