With continued strong demand for Bangko Sentral ng Pilipinas (BSP) 28-day bills, its average interest rate again dropped to 1.8052 percent or 2.334 basis points (bps) lower from the previous auction.
The auction remained oversubscribed by 1.52x with the BSP receiving bids worth P151.50 billion versus offer of P100 billion.
BSP Deputy Governor Francisco G. Dakila Jr. said the offered P100 billion worth of 28-day bills was fully awarded “amid strong demand from market participants.”
“This led to the continued decline in the weighted average interest rate which settled 2.334 bps lower than last week’s rate to 1.8052 percent,” he noted. “Similarly, the range of accepted yields continued to shift lower and slightly narrowed at 1.790-1.820 percent,” he added.
Dakila reiterated that Friday’s auction continue to “reflect normal market conditions and ample liquidity in the financial system.”
The bid coverage ratio was at 1.5150, lower than last week’s 1.6139. The BSP security facility was introduced in September last year. The 28-day tenor used to be the volume alloted for a term deposit facility.