MANILA – The rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities declined on Friday despite the strong demand for the debt paper.
Data released by the central bank showed that the average rate of the bills slipped to 1.9978 percent from 2.0452 percent during the auction last March 18.
The BSP hiked the offer volume to PHP110 billion from PHP100 billion in the previous auction.
Total tenders amounted to PHP155.55 billion, resulting in a bid coverage ratio of 1.4141.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said yields accepted in this week’s BSP bills auction “remained low and narrowed to a range of 1.9500-2.0475 percent.”
“The results of the BSP bill auction remain in line with the observed normalization of liquidity conditions amid ample liquidity in the financial system,” he said.
Dakila said the central bank’s “monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments.” (PNA)
