BSP bills 1.87 times oversubscribed

Published July 16, 2021, 5:32 PM

by Lee C. Chipongian

The central bank’s securities auction Friday was 1.87 times oversubscribed at P186.61 billion but not much higher than the previous week’s P182.21 billion.

The Bangko Sentral ng Pilipinas (BSP) fully awarded P100 billion of 28-day bills in an auction that had “robust demand among market participants,” according to BSP Deputy Governor Francisco G. Dakila Jr.

The BSP bills’ weighted average interest rate continued to decline however at 1.7844 percent, down 1.779 basis points from the previous 1.8022 percent.

Dakila noted that the yields accepted “shifted lower and remained at a narrow range of 1.770-1.789 percent.”

“(Friday’s) auction results continue to show market participants’ sustained strong interest in the 28-day bill amid ample liquidity in the financial system,” he reiterated.

The securities auction had a bid coverage ratio of 1.8661, up from July 9’s 1.8221.

The BSP restored its power to issue securities in 2019 when the BSP Charter was amended. The auctions have been mostly oversubscribed since its first offering of P20 billion on September 18, 2020. Its highest offering was P120 billion. Currently, it is offered at P100 billion.