Manila Bulletin

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


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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