MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills declined on Friday as demand remains strong, buoyed by the high liquidity situation in the economy.
Data released by the central bank showed that the average rate of the debt paper, which is another excess liquidity siphoning facility of the BSP, slipped to 1.7181 percent from 1.7194 percent during the auction last September 3.
BSP retained the offer volume at PHP110 billion, and the auction committee made a full award.
Total tenders reached PHP137.82 billion, lower than PHP148.05 billion worth of bids in the previous auction.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said the accepted yield widened in this week’s auction to between 1.7000-1.7415 percent from the previous week’s 1.7125-1.7275 percent.
He said BSP bills auction results this week “continue to show that market conditions remain normal, supported by ample liquidity in the financial system.”
“Moving forward, the BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” he added. (PNA)
