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BSP 28-day Bills’ rate drop anew as demand remains strong

Normalization of domestic liquidity after the Christmas holidays continues to drive demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day Bills, which posted another interest rate decline on Friday.

Data released by the central bank showed that weighted average accepted yield of the debt securities, which is among the BSP’s excess liquidity mopping tools, slipped to 1.7053 percent from 1.7298 percent during the auction last January 14.

BSP offered the debt paper for PHP100 billion and the auction committee made a full award.

Total tenders amounted to PHP174.223 billion while bid coverage ratio stood at 1.7422.

BSP Deputy Governor Francisco Dakila Jr., in a statement, said “yields accepted in today’s auction shifted lower but widened to a range of 1.6500- 1.7160 percent.

He said this week’s BSP bills auction results “remain in line with the observed normalization in market conditions following the December holidays.”

“Short-term market interest rates remain low, supported by ample liquidity in the financial system. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)

Source: Philippines News Agency