RATE UP ANEW. Expectations for sustained interest rate increases bring the rate of the Bangko Sentral ng Pilipinas' (BSP) 28-day bills higher on Friday (Oct. 21, 2022). The BSP lowered the volume offering to PHP70 billion, which BSP Deputy Governor Francisco Dakila Jr. traced to expectations of lower short term excess liquidity in the system. (PNA file photo)
MANILA – Expectations for continued rise of interest rate resulted in another yield uptick for the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills on Friday.
The average rate of the debt paper rose to 5.0251 percent from 4.9781 percent during the auction last Oct. 14.
The BSP reduced the offering to PHP70 billion from PHP120 billion last week.
In a statement, BSP Deputy Governor Francisco Dakila Jr. traced the decline to “expected lower excess liquidity in the financial system in the short term.”
Total bids reached PHP100.63 billion or around 1.44 times of the volume offering for this week.
The auction committee awarded the debt paper in full.
Dakila said yields accepted this week “shifted higher but narrowed to a range of 4.9000-5.2125 percent.”
“The results of the BSP bill auction reflect market participants’ expectations of rising short-term interest rates. Going forward, the BSP will continue to conduct its monetary operations guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)
