BSP fully grants 28-day invoices – Manila Bulletin

Bangko Sentral ng Pilipinas (BSP) 28-day BSP bond auction was still over-subscribed and posted a lower rate last Friday.

“Market interest remained strong,” according to BSP Deputy Governor Francisco G. Dakila Jr.

The BSP offered P60 billion, the same as last November 20, and received P112.20 billion in tenders, which was less than the P123.80 billion last week.

“The P60 billion bid for the 28-day BSP bills was fully awarded in the BSP securities auction (on Friday),” said Dakila. The weighted average rate fell to 1.7053 percent or 0.82 basis points less than last week.

The range of accepted returns was 1,700 percent to 1,725 ​​percent, which were narrower compared to last week’s 1.680 percent to 1,750 percent.

Dakila said that “sustained demand for BSP bills is in line with the view that liquidity in the financial system remains ample.”

He reiterated that the monetary operations of the BSP “will continue to be guided by its evaluation of the evolution of the market and liquidity conditions.”

The BSP securities were launched on September 18 after the BSP restored its authority to issue bills and bonds last year when its statute was changed.

“This is part of our drive towards more market-based monetary operations,” BSP Governor Benjamin E. Diokno said last Friday.

“The BSP securities will gradually expand the existing supply of risk-free financial instruments in the banking system and help the development of the local bond market,” he added.

The securities line is one of BSP’s main liquidity cleaning tools and complements its term deposit line which is offered every Wednesday.