BSP fully awards 28-day bills

Published March 22, 2021, 6:30 AM

by Lee C. Chipongian

The Bangko Sentral ng Pilipinas’ (BSP) auction of BSP bills last Friday was 1.37 times oversubscribed and fully awarded by the central bank.

BSP Deputy Governor Francisco G. Dakila Jr. said they offered and awarded in full P70 billion of 28-day BSP bills. 

“The weighted average interest rate increased slightly by 1.855 bps (basis points) to 1.9630 percent (while) yields accepted were generally in the same range as in the previous auction but were narrower at 1.850-2.050 percent,” said Dakila.

During Friday’s auction, bids received surpassed the P70 billion offer at P96.20 billion which was equivalent to 1.37x the offered volume.

“The results of the BSP securities auction continue to reflect market participants’ factoring in of higher inflation expectations in their search for yields,” noted Dakila.

“Nonetheless, financial system liquidity remains ample. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity condition and market developments,” he said.       

The BSP bills was first issued on September 18, 2020, after restoring this authority in 2019 through a charter amendment. However so far, only one tenor the 28-day securities, is being issued on a weekly basis.