UP ANEW. Average rate of the Bangko Sentral ng Pilipinas'(BSP) 28-day securities inched up anew on Friday (December 2, 2022), but attracted a large volume of bids, surpassing the PHP120 billion offer. BSP Deputy Governor Francisco Dakila Jr. says the results of the BSP bill auction continue to reflect the pass-through of the recent BSP policy rate hike amid ample liquidity in the financial system (Photo courtesy of BSP)

MANILA — Rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day bill rose anew on Friday, but the debt paper still attracted large volume of bids this week.

Average rate of the debt paper rose to 6.1740 percent from 6.0031 percent during the auction last November 25.

BSP kept the offer volume at PHP120 billion, which was fully awarded. Total tenders reached PHP139.35 billion.

BSP Deputy Governor Francisco Dakila Jr., in a statement, noted that yields accepted in this week’s BSP securities auction “shifted higher but narrowed to a range of 5.9800-6.2700 percent.”

“The results of the BSP bill auction continue to reflect the pass-through of the recent BSP policy rate hike amid ample liquidity in the financial system,” he said.

BSP’s policy-making Monetary Board (MB) hiked by another 75 basis points the central bank’s key policy rates last November 17, bringing the total rate hike since last May to 300 basis points.

This, as domestic inflation remains elevated, with the October 2022 level rising to 7.7 percent, the highest since December 2008.

Monetary authorities also said the rate hike is needed to ensure interest rate differential with the US following the 375 basis points increase in the US Federal Reserve’s key rates since last March.

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