MANILA – High liquidity situation in the domestic economy continues to push demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities, the interest rate of which declined Friday.
Data released by the central bank showed that the average accepted yield of the debt paper slipped to 1.9922 percent from 2.0367 percent during the auction last Oct. 30.
The BSP lowered the offer volume to PHP60 billion from last week’s PHP70 billion.
Tenders were more than twofold at PHP121.725 billion.
The auction committee made a full award.
The bid coverage ratio improved to 2.0288 from last week’s 1.7221 when bids amounted to PHP120.55 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said that “amid sustained strong demand and lower offer volume, majority of the bids received shifted to the low end of the accepted yields following the results of last week’s auction wherein most of the bids were cut off.”
Dakila said auction results this week continue to “show that financial system liquidity remains ample.”
“The BSP will continue to be guided by its assessment of market developments and liquidity conditions in the conduct of its monetary operations going forward,” he added. (PNA)
