BSP bills attract P194.7-B bids

Published January 14, 2022, 4:12 PM

by Lee C. Chipongian

The central bank’s auction of 28-day securities on Friday, Jan. 14, received P194.7 billion bids against an offer of P100 billion.

BSP Deputy Governor Francisco G. Dakila Jr.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco G. Dakila Jr. said the “results of the BSP bill auction continue to reflect the normalization of liquidity conditions in the financial system amid ample supply.”

The 28-day BSP securities is still offered at P100 billion. Its tenders were however lower this week compared to the previous Friday’s P211.39 billion.

“The BSP maintained the offering at P100 billion for the issuance of 28-day bills which was awarded in full amid sustained strong demand from market participants,” said Dakila.

The BSP bills’ yield is lower this week or by 3.682 basis points to 1.7298 percent. “The yields accepted, likewise, shifted lower and narrowed to a range of 1.7000-1.7490 percent,” noted Dakila.

The latest auction results of P194.7 billion bids is equivalent to about 1.95x the auction offer.

The bid coverage ratio is 1.9470 which was lower compared to Jan. 7’s 2.1139.

The BSP securities facility is one of the central bank’s primary liquidity mopping-up tool to control inflation. It was first introduced in September 2020.