MANILA – The average rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities rose on Friday but a ranking executive said demand for the debt paper remained strong.
Data released by the BSP showed that average weighted rate of the securities, which is among the central bank’s excess liquidity mopping tools, inched up to 1.9492 percent from 1.9211 percent during the auction on February 28.
BSP lowered the offer volume to PHP100 billion from week ago’s PHP130 billion, which BSP Deputy Governor Francisco Dakila Jr. said was made “in view of the scheduled settlement of the Retail Treasury Bonds (RTBs) today (Friday)”.
He was referring to the Bureau of the Treasury’s (BTr) issuance of a five-year debt paper that is intended for small investors, given its PHP5,000 minimum placement.
He said results of this week’s BSP bills auction “reflected the temporary effect of the RTB settlement on liquidity conditions”.
“Nevertheless, financial system liquidity continues to be ample as rates remain low amid good demand. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
