(File photo)
MANILA – Sustained robustness of domestic liquidity continues to drive strong demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities, resulting to another decline in its interest rates.
Data released by the central bank on Friday showed that interest rate of the debt paper fell to 1.7739 from 1.7833 percent during the auction last May 7.
Total volume offering remains at PHP100 billion and bids reached PHP120.926 billion.
This resulted in a bid coverage ratio of 1.2092, higher than last week’s 1.1602 when bids reached PHP116.024 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said accepted yields this week shifted lower but widened.
Accepted yield ranged between 1.7625 percent to 1.8 percent from last week’s 1.77 percent to 1.8 percent.
Dakila said “results of the auction continue to support the view that market conditions remain normal amid sustained ample liquidity in the financial system".
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
