RATE UP. The rate of the central bank's 28-day securities rose on Friday (Oct. 7, 2022), which Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila Jr. traced to the latest hike in its key policy rate. The BSP kept the offer volume for the securities but it attracted lower bids. (Photo courtesy of BSP)

MANILA – The Bangko Sentral ng Pilipinas’ (BSP) 28-day bill registered another rate uptick while demand declined on Friday.

Data released by the central bank showed that rate of the debt securities rose to 4.7093 percent from 4.5301 percent during the auction last Sept. 30.

The BSP kept the offer volume at PHP140 billion and bids were lower at PHP120.05 billion, which the auction committee fully accepted.

In a statement, BSP Deputy Governor Francisco Dakila Jr. said the undersubscription “could be attributed in part to loan releases as well as to preference of counterparties’ clients for other assets such as government securities.”

Dakila said yields accepted in this week’s auction “shifted higher and widened to a range of 4.5280-5.0000 percent.”

“The results of the BSP bill auction reflect the continued pass-through of the 50-bp (basis points) hike in the BSP’s policy rate,” he said.

Dakila is referring to the latest rate cut in the central bank’s key rates, which brought the BSP’s overnight reverse repurchase (RRP) facility rate to 4.25 percent.

“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)