RATE DROP. The average rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day Bills declined on Friday (July 8, 2022), boosted by the strong demand for the debt paper. Bangko Sentral ng Pilipinas Deputy Governor Francisco Dakila Jr. traced the slip in the debt paper's rate to the ample domestic liquidity situation in the country. (Photo from BSP)
MANILA – The ample domestic liquidity situation continues to back demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day Bills, which posted a lower rate on Friday.
Data released by the central bank showed that the average rate of the debt securities declined to 2.8635 percent from 2.8849 percent during the auction on July 1.
The BSP hiked the offer volume to PHP150 billion from PHP130 billion last week. It was fully awarded.
Total bids reached PHP222.55 billion, resulting in a bid coverage ratio of 1.4837.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said yields accepted during the day “shifted lower and narrowed to 2.8250-2.8800 percent.”
“The results of the auction reflect the robust demand of market participants for the BSP bill amid ample liquidity in the financial system,” Dakila said.
He added that the central bank’s “monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments.” (PNA)
