MANILA – Oversubscription was registered anew during the auction for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities on Friday, amid the higher offer volume this week.
Data released by the central bank showed that total tenders for the BSP bills reached PHP190.2 billion, higher than the PHP120 billion offer and hiked by PHP20 billion compared to the previous week. The auction committee made a full award.
Rate of the debt paper, which is among the BSP’s tools to mop up excess liquidity from the domestic financial system, declined to 1.6723 percent from last week’s 1.6809 percent.
BSP Deputy Governor, Francisco Dakila Jr., said in a statement the yield accepted during the auction this week “shifted higher but narrowed to a range of 1.6300 to 1.6945 percent”.
It was between 1.6000 to 1.7100 percent during the auction last week.
“The results of the BSP bill auction reflect the continued normalization of liquidity in the financial system amid ample supply. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” Dakila added. (PNA)
