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MANILA – The auction of the initial 28-day Bangko Sentral ng Pilipinas (BSP) bill received strong demand on Friday.
Data released by the central bank showed that the debt role was offered for PHP20 billion and the bids reached PHP43.36 billion. The auction committee made a full prize.
The rate of the debt securities was located at 1.8355 percent, while the coverage ratio of the offer is 2.1680.
The auction of the central bank’s own debt securities was reinstated under the New Central Bank Law and is in line with the BSP’s offer towards more market-based monetary operations.
BSP said that the volume supply for BSP Bills, as well as BSP bonds to be auctioned later, will gradually increase based on demand and the central bank’s assessment of the domestic liquidity supply in the economy.
Debt securities are part of the BSP’s liquidity management tools and reinforce the implementation of monetary policy under the Interest Rate Corridor (IRC), which the central bank adopted in June 2016.
It is also among the risk-free financial instruments of the national banking system and is expected to boost the local bond market. (PNA)
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