RATE DECLINE. Average rate of the Bangko Sentral ng Pilipinas' (BSP) 28-day bills went down anew on Friday (Jan. 20, 2023), which BSP Deputy Governor Francisco Dakila Jr. traced to the strong demand for the debt paper. The debt paper was oversubscribed even after BSP hiked the offer volume from PHP160 billion to PHP190 billion. (Photo courtesy of the BSP)
MANILA – Rate of the Bangko Sentral ng Pilpinas’ (BSP) 28-day bills slipped anew on Friday amidst strong demand for the debt paper on the back of the high liquidity environment in the country.
Data released by the central bank on Friday showed that average rate of the debt paper slipped to 6.3464 percent from 6.3590 percent during the auction last Jan. 13.
BSP hiked the offer volume to PHP190 billion from last week’s PHP160 billion. The auction committee made a full award after bids reached PHP230.212 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said the debt paper’s interest rate declined by 1.2542 basis points from last week’s level while accepted range for the yield narrowed to between 6.0000-6.4000 percent.
“The results of the BSP bill auction remain reflective of market participants’ continued strong interest amid ample liquidity in the financial system,” he said.
He added that the central bank’s “monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments.” (PNA)
