MANILA – High domestic liquidity situation continues to result to oversubscription in the Bangko Sentral ng Pilipinas’ (BSP) 28-day debt securities auction resulting in the drop in the paper’s interest rate.
Data released by the central bank on Friday showed that average rate of the debt paper fell to 1.7833 from 1.8052 percent during the auction last April 30.
BSP offered the debt paper for PHP100 billion, same as last week, and tenders reached PHP116.02 billion. The auction committee made a full award.
Bid coverage ratio improved to 1.1602 from last week’s 1.5150 when the tenders amounted to PHP151.5 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said results of this week’s 28-day securities auction “continue to show that market conditions remain normal amid ample liquidity in the financial system.”
“Moving forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
