BSP RATE. Expectations for more policy rate hike decisions from the Bangko Sentral ng Pilipinas (BSP) resulted to another jump in central bank's 28-day securities on Friday (June 24, 2022). Monetary authorities said domestic liquidity remains ample despite the increases in the debt securities' yield. (BSP logo)
MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills rose on Friday in line with expectations for more rate hikes from the central bank.
BSP data show that average rate of the debt securities, which is among the central bank’s excess liquidity mopping tools, jumped to 2.8523 percent from 2.7914 percent during the auction last June 17.
It lowered the offer volume by PHP10 billion to PHP130 billion and the auction committee made a full award.
Total tenders amounted to PHP203.15 billion, resulting in a bid coverage ratio of 1.5627.
BSP Deputy Governor Francisco Dakila Jr. has repeatedly traced the upticks in the BSP bills’ rate to expectations for additional increases in the central bank’s key policy rates, which have been hiked by a total of 50 basis points since last May.
He noted, however, that amidst the increases in the BSP securities' yield, liquidity in the domestic financial system remains ample. (PNA)
