By Lee C. Chipongian
The term deposit facility volume will go back to P110 billion level from P90 billion on anticipation of more demand this week, the Bangko Sentral ng Pilipinas (BSP).
The TDF auction is once again at P110 billion on Wednesday, April 4, from P90 billion last March 28. This is P50 billion for the 7-day, P40 billion for the 14-day, and P20 billion for the 28-day tenor.
Only the 14-day and 28-day offer sizes were reduced last Wednesday, to P30 billion and P10 billion. Tenders amounted to P90.70 billion for all three tenors.
The auction results were mixed, with the 7-day average rate falling to 3.1651 percent while bids of P46.48 billion were below offer of P50 billion. The 14-day and the 28-day fetched higher rates of 3.2788 percent and 3.4232 percent, respectively. Tenders were slightly more than offer, at P32.13 billion and P12.08 billion.
BSP Governor Nestor A. Espenilla Jr. earlier commented that the cut in TDF auction size from P110 billion to P90 billion is only temporary since with the long Holy Week break, banks would prefer to be liquid. The TDF is one of the BSP’s more efficient liquidity mopping tool.