MANILA – Demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities remains, resulting in an increase in the debt paper’s interest rate.
Data released by the central bank Friday showed that average accepted yield of the debt paper rose to 1.8956 percent from 1.8487 percent during the auction last October 9.
BSP offered it for PHP120 billion and tenders reached PHP129.1 billion.
Bid coverage ratio narrowed to 1.0758 from last week’s 1.8200 when this tenor was offered for PHP60 billion and bids were nearly two-times at PHP109.2 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, cited to strong domestic liquidity the continued demand for the one-month BSP bill.
“Looking ahead, the BSP will remain guided by its assessment of recent market developments and liquidity conditions in the further refinement of its monetary operations,” he added. (PNA)
