BSP bill auction undersubscribed

THE central bank’s auction of 28-day securities on Friday was undersubscribed with total tenders of just P109.469 billion against the P120 billion on offer.

Bids were about “0.91x the volume offered,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila Jr. said in a statement.

The weighted average interest rate continued to rise from last week, increasing by 20.2627 basis points to 6.0031 percent.

Likewise, the yields accepted shifted higher but narrowed marginally to a range of 5.7950 to 6.2000 percent.

“The undersubscription ... could be attributed to the increasing demand for cash by eligible counterparties in preparation for the December holidays,” Dakila said.

“Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added.