MANILA – Domestic liquidity remains in the system as shown on Friday’s auction for the Bangko Sentral ng Pilipinas’ (BSP) 28-day securities resulting in the drop in rates of the debt paper.
Average rate of the debt paper declined further after it fell by 0.838 basis points to 1.6837 percent.
The BSP offered the paper for PHP80 billion and bids totaled to PHP127.35 billion. The auction committee made a full award.
Bid coverage ratio stood at 1.5919.
In a statement, BSP Deputy Governor Francisco Dakila Jr. cited the strong demand for the debt paper, which he traced to the high domestic liquidity environment.
“Over the coming weeks, the BSP’s monetary operations will remain guided by its assessment of market developments and liquidity conditions,” he added. (PNA)