Manila Bulletin

De­mand for BSP bills still strong; P120-B of­fer sold

- Business · Finance · Banking · Bangko Sentral ng Pilipinas · Nigeria

The cen­tral bank’s auc­tion of 28-day se­cu­ri­ties fetched a higher rate on Fri­day, it re­mained over­sub­scribed as the only 28-day of­fer­ing this week af­ter the Bangko Sen­tral ng Pilip­inas (BSP) put aside the 28-day term de­posit fa­cil­ity (TDF).

The BSP bills re­ceived R129.1 bil­lion ten­ders against an of­fer of P120 bil­lion. The ten­ders or bid is equiv­a­lent to a bid-to-cover ra­tio of 1.1 times.

“The BSP of­fered and fully awarded R120 bil­lion worth of 28-day BSP bills,” said BSP Deputy Gov­er­nor Fran­cisco G. Dak­ila Jr. “This re­sulted in a weighted av­er­age in­ter­est rate of 1.8956 per­cent, 4.687 ba­sis points higher than last week’s rate.”

Dak­ila said the ac­cepted yields were wider at 1.850 per­cent to 2.250 per­cent this week.

“De­mand for the BSP bills re­mained strong amid am­ple

nan­cial liq­uid­ity,” he noted. He again said that BSP’s vol­ume for the se­cu­ri­ties con­tinue to be guided by its as­sess­ment of re­cent mar­ket de­vel­op­ments and liq­uid­ity con­di­tions.

Dur­ing Wed­nes­day’s auc­tion of TDF, the 28-day was not in­cluded to fa­vor the vol­ume for the se­cu­ri­ties which re­main of­fered as just the one-month bills. Only the 7-day and 14-day TDF tenors were of­fered this week. (Lee C. Chipon­gian)

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