MANILA – Domestic liquidity continues to remain ample as shown by the robust bids for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities, which posted another decline of interest rate on Friday.
Central bank data show that BSP hiked the offer volume for the debt paper this week to PHP120 billion from last week’s PHP110 billion.
Tenders amounted to PHP210.75 billion, thus the full award for the securities. Bid coverage ratio stood at 1.7563.
The average rate of the debt paper declined further to 1.9677 percent from the previous auction’s 1.9978 percent.
BSP Deputy Governor Francisco Dakila Jr. has repeatedly traced the decline in the central bank’s 28-day bills rate to normalization of domestic liquidity conditions.
“Moving forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he said. (PNA)
