MANILA – Rate of Bangko Sentral ng Pilipinas’ (BSP) 28-day securities declined again Friday due to strong demand, boosted by high domestic liquidity situation.
Data released by the central bank showed a weighted average interest rate of 1.6124 percent for the debt paper, a drop from 1.6251 percent during the auction last January 29.
BSP offered the BSP bills for PHP120 billion this week and tenders amounted to PHP148.81 billion. The auction committee made a full award.
Bid coverage ratio stood at 1.2401, lower than last week’s 1.5090 when the PHP100 billion offer was met with tenders amounting to PHP150.9 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said “results of the BSP bills auction reflect very ample liquidity in the financial system.”
“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of liquidity conditions and market developments,” he added. (PNA)
