MANILA – The average rate of the Bangko Sentral ng Pilipinas’ (BSP) 28-day Bills moved sideways as demand remains despite the higher offer volume this week.
Data released by the central bank on Friday showed that the average rate of the debt paper, which is among the BSP’s excess liquidity mopping tools, slipped to 1.7689 percent from 1.7684 percent during the auction on October 22.
The accepted yield widened to between 1.7500 percent and 1.8000 percent from last week’s 1.7425 percent to 1.7880 percent.
The BSP hiked the offering to PHP110 billion from last week’s PHP100 billion.
The auction committee made a full award after total tenders reached PHP130.25 billion.
Earlier, BSP Deputy Governor Francisco Dakila Jr. said demand for the BSP’s securities remains strong given the high liquidity situation in the domestic economy.
Dakila said the high volume of bids during the weekly auction showed that “market conditions remain stable amid sustained ample liquidity in the financial system.”
“Moving forward, the BSP’s monetary operations will remain guided by its latest assessment of the liquidity conditions and market developments,” he added. (PNA)