BSP bills awarded in full

Published January 16, 2021, 5:00 AM

by Lee C. Chipongian

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila Jr. said the auction of its 28-day BSP bills continue to be oversubscribed or 1.67x the offered volume.

The BSP offered P100 billion of its securities during Friday’s auction, and banks tendered P167.25 billion.

“The P100 billion offering of 28-day BSP bills was awarded in full in (Friday’s) auction,” said Dakila.

“Amid strong demand, the weighted average interest rate declined by 1.342 basis points (bps) from last week’s rate to 1.6473 percent. The accepted yields were lower and slightly narrower in range at 1.635-1.660 percent,” he added.

Dakila continue to note the robust demand for its lone securities tenor, first offered September last year.

 “The sustained strong interest for the 1-month bills shows that liquidity in the financial system remains ample,” he said.

“The BSP will continue to be guided by its assessment of liquidity conditions and market developments in its monetary operations,” Dakila reiterated.

The BSP first offered the BSP bills on September 18, 2020. The securities facility is considered one of the BSP’s more effective liquidity management tool to bring short-term market rates closer to the policy rate.