MANILA – Rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills declined anew Friday, which a ranking monetary official still traced to strong demand and the higher liquidity situation in the domestic economy.
Data released by the BSP showed the drop of the debt paper’s average rate to 1.6362 percent from 1.6473 percent during the auction last January 15.
BSP offered the paper for PHP100 billion and tenders reached PHP162.8 billion. Bid coverage ratio stood at 1.6280.
Last week, the paper was offered for PHP100 billion and bids reached PHP167.25 billion.
BSP officer-in-charge, Deputy Governor Francisco Dakila Jr., in a statement, said continued demand for the debt securities “supports the view that financial system liquidity is ample as demand for cash holdings normalizes following the holidays.”
“Moving forward, the BSP’s monetary operations will remain guided by its assessment of liquidity conditions and market developments,” he added. (PNA)