MANILA – Strong demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills resulted in another drop in its average rate on Friday.
Data released by the central bank showed that the debt paper was again offered for PHP100 billion and bids amounted to PHP153.98 billion.
The auction committee made a full award.
The average rate of the paper slipped to 1.7309 percent from last week’s 1.7487 percent.
The bid coverage ratio stood at 1.5398, lower than the 1.8325 during the auction on August 13 when bids amounted to PHP183.25 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. traced the oversubscription in the debt securities to continued strong interest for the BSP bill amid sustained ample liquidity in the financial system.
“Looking ahead, the BSP’s monetary operations will continue to be guided by its latest assessment of liquidity conditions and market developments,” he added. (PNA)
