MANILA – The rate of the central bank’s 28-day securities rose on Friday but demand remained high, which a ranking Bangko Sentral ng Pilipinas (BSP) executive attributed to ample liquidity in the economy.
BSP data show that the average rate of the debt paper, which is among the central bank’s tools to mop up excess liquidity from the financial system, inched up to 3.45-- percent from 3.3958 percent during the auction last July 15.
It kept the offer volume at PHP150 billion, which the auction committee fully awarded. Total tenders reached PHP229.366 billion.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said range of yield accepted during the auction “shifted higher but narrowed to a range of 3.2000-3.5168 percent.”
“The results of the BSP bill auction reflect normal market conditions, supported by ample liquidity in the financial system,” he said.
He added the central bank’s “monetary operations will continue to be guided by its assessment of the latest liquidity conditions and market developments.” (PNA)