MANILA – Strong demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities resulted in another drop of its rates Friday.
The rate of the debt paper slipped further to 1.6921 percent from 1.6985 percent last week.
The BSP offered the paper for PHP80 billion and tenders reached PHP141.25 billion.
This resulted in a bid coverage ratio of 1.7656.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said “market participants were looking to lock-in funds for a month ahead of the holidays which led to the further decline in the weighted average interest rate.”
“The sustained strong demand for the BSP deposit facilities amid the coming holidays support the view that financial liquidity remains ample,” he said.
Dakila said the central bank’s monetary operations will continue to be guided by its assessment of market developments and liquidity conditions. (PNA)