MANILA – Strong demand for the Bangko Sentral ng Pilipinas (BSP) 28-day bill resulted to the drop of its rate on Friday.
Average rate of the debt paper slipped to 6.7222 percent from the 6.7374 percent during the auction last May 12, data released by the central bank showed.
BSP kept the offer volume at PHP120 billion and bids reached PHP168.525 billion. The auction committee made a full award.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said range of yields accepted in this week’s securities auction “narrowed to 6.6850-6.7500 percent.”
“Demand for BSP Securities remained strong following the BSP’s decision to pause its monetary policy tightening amid signs of easing inflation,” he said.
He is referring to the decision by the policy-making Monetary Board (MB) of the BSP to maintain the central bank’s policy rates after noting the deceleration of domestic inflation rate and the still robust growth of the domestic economy.
The pause in the key rates is the first since the BSP started its tightening move in May 2022.
Dakila said “the BSP’s monetary operations will continue to be guided by its assessment of the prevailing liquidity conditions and market developments.” (PNA)
