Sun Star Bacolod

Undersubsc­ribed 28-day securities fetch higher yield: BSP


MANILA – The Bangko Sentral ng Pilipinas (BSP) partially awarded its 28-day securities after it was undersubsc­ribed during Friday’s auction.

The 28-day securities offered at PHP120 billion only fetched tenders of PHP109.469 billion.

But bids fetched higher interest rate of 6.0031 percent from last week’s auction with yield at 5.8005 percent.

BSP’S accepted yields for this offer were between 5.7950 percent and 6.2000 percent, with bid coverage ratio at 0.9122.

“The undersubsc­ription in today’s auction could be attributed to the increasing demand for cash by eligible counterpar­ties in preparatio­n for the December holidays,” BSP Deputy Governor Francisco Dakila Jr. said in a statement.

Dakila added that the central bank will remain by its assessment on the latest liquidity conditions and market developmen­ts.

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