Average rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities inched up Friday due to strong demand.
Data released by the central bank showed that the rate of debt paper rose to 1.8487 percent from 1.8423 percent during the auction for the same tenor last October 2.
BSP offered the paper for PHP60 billion and tenders reached PHP109.2 billion. It was fully awarded.
Bid coverage ratio improved to 1.8200 from last week’s 1.7502 when the paper was offered for PHP50 billion and received tenders amounting to PHP87.51 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said the rate of the 28-day debt paper is “comparably close to that of the 28-day TDF in Wednesday’s auction”.
The rate of the 28-day term deposit facility (TDF) this week rose to 1.8445 percent.
“The sustained strong market interest for BSP bills continues to reflect ample liquidity in the financial system,” Dakila said.
The central bank official said, “market participants are seen to have sufficiently integrated the BSP Securities Facility with their liquidity management.”
“Moving forward, the BSP will continue to refine and recalibrate the overall strategy of its current monetary operations, guided by its assessment of recent market developments and liquidity conditions,” he added.
BSP initially issued its maiden 28-day debt paper last September 18.
Source: Philippines News Agency