By Lee C. Chipongian
The Bangko Sentral ng Pilipinas (BSP) opened the term deposit facility (TDF) Wednesday with an offer of P30 billion for the 7-day tenor, the only term deposit auctioned.
The shortest-dated TDF attracted ₱78.496 billion tenders while the BSP awarded ₱30 billion. The average rate accepted was at 2.9578 percent during the auction.
The BSP suspended the TDF operation on March 18, and also cancelled the scheduled auction on that day because of the COVID-19 lockdown which began on March 17.
The last TDF auction pre-enhanced community quarantine was March 11.
The BSP said it will suspend the TDF auctions as warranted, but will resume activity if also warranted by the market. However it will ensure the “timely suspension of the TDF auctions for certain tenors” to “shore up market confidence and cushion domestic economic activity.”