MANILA – Demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills remained strong although its rates continue to rise vis-à-vis the path of the central bank’s key policy rates.
BSP on Friday kept the offer volume for the securities at PHP120 billion and bids reached PHP181.5 billion. The auction committee made a full award.
Average rate of the debt paper inched up to 6.4426 percent from 6.4234 percent during the auction last Dec. 16.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said yields accepted in this week’s 28-day bill auction “narrowed to a range of 6.2875-6.5000 percent.”
“The results of the BSP bill auction remain reflective of strong interest from market participants amid ample liquidity and a little over a week following the 50-bp (basis points) rate hike by the BSP on 15 December,” he said.
BSP’s policy-making Monetary Board again hiked the central bank’s key policy rates as they see inflation remaining elevated, thus, the need to remain on guard against more second-round effects.
“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments,” Dakila added. (PNA)