Bids for BSP bills 1.83x oversubscribed

Published August 15, 2021, 5:20 PM

by Lee C. Chipongian

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila Jr. said Friday that strong demand in the BSP 28-day bill continues with bids reaching P183.25 billion, or 1.83x more than the P100 billion offer.

Dakila said there was “strong interest from the market participants” and the auction was awarded in full.

The BSP securities fetched a lower weighted average interest rate of 1.7487 percent or 1.323 basis points down from the previous rate. The yields accepted was still low and it narrowed further to a range of 1.7400 percent to 1.7525 percent, noted Dakila.

The bid coverage ratio this week was at 1.8325, more than August 6’s 1.6588. The previous auction received lower tenders of P165.88 billion.

The BSP securities facility is a liquidity absorbing tool, first introduced in September 2020, to manage excess money supply after the BSP unleashed more than P2 trillion of fresh bank liquidity into the financial system as part of its anti-pandemic response.