The rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities declined on Friday as the high liquidity situation in the economy continues to drive demand for the paper.
Data released by the central bank showed that the average rate of the paper, which is among the central bank’s tools to siphon off excess liquidity from the economy, slipped to 1.8534 percent from last week’s 1.8653 percent.
The BSP kept the offer volume at PHP80 billion, and tenders reached PHP104.56 billion.
The debt paper was fully awarded and posted a bid coverage ratio of 1.3070.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said results of this week’s securities auction “continues to support the view that liquidity in the financial system remains ample amid market participants’ preparations for the holiday cash demand.”
“Moving ahead, the BSP’s monetary operations will remain guided by its assessment of emerging liquidity conditions and market developments,” he said.
Source: Philippines News Agency
