Normalizing the domestic liquidity situation after the Christmas holidays further boosted demand for the Bangko Sentral ng Pilipinas’ (BSP) 28-day bills, which registered a lower interest rate on Friday.
Data released by the BSP showed that the rate of the debt paper, which is among the central bank’s tools to mop up excess liquidity from the domestic economy, slipped to 1.7666 percent from 1.8534 percent during the auction on Dec. 17, 2021.
The BSP hiked the offer volume to PHP100 billion from PHP80 billion previously. Total tenders reached 211.39 billion.
The auction committee made a full award.
BSP Deputy Governor Francisco Dakila Jr. said in a statement that the outcomes of the first BSP bills auction for this year “continue to support the view of normalization in liquidity conditions following the holiday demand for cash.”
“The strong demand by market participants for the 28-day bill reflects very ample financial system liquidity,” he said. “Looking ahead, the BSP’s monetary operations will remain guided by its assessment of emerging liquidity conditions and market developments.”
Source: Philippines News Agency