RATE UPTICK. Bangko Sentral ng Pilipinas Deputy Governor Francisco Dakila Jr. He said the hike in the rate of the central bank’s 28-day securities was even priced since last week. (Photo courtesy of BSP)

MANILA – Hikes in the Bangko Sentral ng Pilipinas’ (BSP) key policy rates continued to push the yield of the central bank’s 28-day bill higher as the demand for the debt paper remains strong.

The average rate of the securities rose to 4.5301 percent from last week’s 4.4203 percent.

The BSP hiked the offer volume to PHP140 billion from last week’s PHP100 billion.  

The auction committee made a full award after tenders reached PHP149.125 billion.

BSP Deputy Governor Francisco Dakila Jr., in a statement, said the yield accepted in this week’s BSP bill auction has shifted higher and widened to a range of 4.4000 percent to 4.7000 percent.

“The results of the BSP bill auction reflect the 50-bp (basis point) increase in the BSP policy rate last week, which was already partly priced in during the previous auction,” Dakila said.

He explained that the higher volume offer this week “is in line with the BSP's plan to increase the size of its term monetary operations in support of the prevailing monetary policy stance and consistent with the BSP’s exit from monetary accommodation measures in response to the pandemic.”

“Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” Dakila said. (PNA)