MANILA – The high domestic liquidity situation continued to drive the Bangko Sentral ng Pilpinas’ (BSP) 28-day securities’ rate which again fell on Friday.
Data released by the central bank showed that the average rate of the debt paper dropped to 1.7487 percent from 1.7619 percent during the auction last August 6.
The BSP kept the volume offer at PHP100 billion but total bids reached PHP183.25 billion, higher than the PHP165.88 billion last week.
This resulted in a bid coverage ratio of 1.8325, better than the 1.6588 in the previous auction.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said results of the 28-day securities auction this week are “in line with current market developments as financial system liquidity remains ample.”
“Moving forward, the BSP’s monetary operations will continue to be guided by its latest assessment of liquidity conditions and market developments,” he added. (PNA)
