MANILA – Ample liquidity in the domestic economy continues to provide demand for Bangko Sentral ng Pilipinas’ (BSP) 28-day bills, resulting in the drop of its interest rate this week.
Data released by the central bank showed that the average rate of the debt paper, which is among the tools being used by the central bank to siphon off excess liquidity in the economy, slipped to 1.7764 percent from 1.7832 percent during the auction last October 8.
BSP kept the offer volume at PHP100 billion, and the auction committee made a full award. Total tenders amounted to PHP139.05 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said the range of accepted yields this week “remained low and narrowed further to a range of 1.7425-1.8000 percent.”
Last week, the accepted yield is from 1.7400-1.8250 percent.
These results, Dakila said, “continue to reflect stable market conditions as liquidity in the financial system remains ample.”
“Moving ahead, the BSP’s monetary operations will remain guided by its latest assessment of the liquidity conditions and market developments,” he added. (PNA)