LOWER. The average rates of the Bangko Sentral ng Pilipinas' (BSP) debt papers fell on Friday (July 14, 2023). Bids for the 28-day tenor are lower than the offer volume, which BSP Deputy Governor Francisco Dakila Jr. traced to banks' decision to hold on to their cash to service their clients' requirements. (Photo courtesy of BSP)
MANILA – The average rates of the Bangko Sentral ng Pilipinas’ (BSP) bills fell on Friday and the 28-day facility attracted lower bids unlike that of the 56-day tenor.
Data released by the central bank showed that the rate of the shorter-dated facility declined to 6.6554 percent from 6.6619 percent during the auction last July 7.
The rate of the 56-day tenor also went down to 6.6505 percent from last week’s 6.6641 percent.
The BSP kept the offer volume for its shorter-dated bill at PHP120 billion but tenders only amounted to PHP101.475 billion, which the auction committee fully accepted.
The longer-dated facility was again offered for PHP40 billion and was fully awarded after tenders reached PHP43.925 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said yields accepted for the shorter-dated bill widened to 6.5500 to 6.7000 percent but those for the 56-day tenor narrowed slightly to 6.6000 to 6.6974 percent.
“The results of today’s BSP auction reflected market participants’ preference for the longer tenor as they continued to tend to client requirements,” he said.
He added the central bank’s “monetary operations will continue to be guided by its assessment of prevailing liquidity conditions and market developments.” (PNA)
