High liquidity situation continued to drive demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities, which posted another interest rate decline on Friday.
Data showed that average rate of the debt paper, which is among the BSP’s excess liquidity mopping tool, slipped to 1.6809 percent from 1.7053 percent during the auction on January 21.
BSP kept the offer volume at PHP100 billion and the auction committee made a full award.
Total tenders reached PHP137.4 billion, resulting in a bid coverage ratio of 1.3740.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “yields accepted in today’s (Friday) auction likewise shifted lower but widened to a range of 1.6000-1.7100 percent”.
He said results of the securities auction this week showed that liquidity in the financial system remains ample, with short-term market interest rates remaining low.
“Moving forward, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” he added.
Source: Philippines News Agency
