By Lee C. Chipongian The central bank’s weekly term deposit facility (TDF) auction was still undersubscribed with bids of P24.96 billion versus offer of P30 billion, while yields – with the exception of the 6 days – were up. The volume this week was lower compared to June 6’s P40 billion. The Bangko Sentral ng Pilipinas (BSP) offered only P30 billion this week after four weeks of auctioning off P40 billion. After May 31, there was an additional P90-billion-P95-billion liquidity from the big banks after the BSP reduced its reserve requirement ratio (RRR) by 100 basis points (bps), which the BSP is hoping will boost lending activities, especially to productive sectors. Thrift and rural banks’ RRR were also slashed by 100 bps each at the end of May, releasing about P8-billion-P9-billion fresh funds from thrift banks, and about P1.8 billion from rural banks. The 6-day TDF (adjusted because of the June 12 Independence Day holiday), offered at P10 billion, had bids of P10.77 billion. It’s the only tenor that was oversubscribed. Yields were steady at 4.6661 percent from 4.6669 percent last week. Last June 6, the TDF was offered at P20 billion. The 13-day TDF was also offered at P10 billion but attracted only P7.42-billion bids. Its average rate was higher at 4.6562 percent compared to the previous week’s 4.6048 percent. Bids for the longest-dated TDF amounted to P6.77 billion against offer of P10 billion. Yields increased to 4.7848 percent from 4.6602 percent. The next RRR cuts at 50 bps each, is on June 28 and July 26 for the universal and commercial banks. By end-July, big banks’ RRR would be at 16 percent from 18 percent before May 31.