SECURITIES RATE DECLINES. The high demand for the Bangko Sentral ng Pilipinas' (BSP) securities continue to result in the decline of the debt paper's average rate. BSP Deputy Governor Francisco Dakila Jr. on Monday (April 18, 2022) traced this to continued normalization of domestic liquidity. (File photo)
MANILA – The continued high demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day bill resulted in the drop in the debt paper’s average rate to 1.9144 percent.
Data released by the central bank on Monday showed that offer volume for the securities was hiked to PHP140 billion from PHP130 billion last April 8.
Total bids reached PHP158.53 billion, resulting in a bid coverage ratio of 1.1323.
Its average rate in the previous auction stood at 1.9312 percent.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “yields accepted remained low but narrowed to a range of 1.8900-1.9400 percent.”
Dakila traced the oversubscription during the auction to “market participants’ continued preference for the BSP bill.”
He said the outcome of the debt paper auction showed “the normalization of liquidity conditions in the financial system amid ample supply.”
“Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
