MANILA – Strong demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities resulted in the drop of its interest rates Friday.
Data released by the central bank showed the decline of the debt paper’s average interest rate to 1.6473 percent from 1.6607 percent during the auction last January 8.
BSP offered the paper for PHP100 billion and bids totaled PHP167.25 billion. The auction committee made a full award.
The bid coverage ratio stood at 1.6725, lower than the previous auction’s 1.8585.
BSP also offered the paper for PHP100 billion last week but tenders are higher at PHP185.85 billion.
“The sustained strong interest for the 1-month bills shows that liquidity in the financial system remains ample,” BSP Deputy Governor Francisco Dakila Jr. said in a statement.
He added that the central bank will “continue to be guided by its assessment of liquidity conditions and market developments in its monetary operations”. (PNA)
