High domestic liquidity situation and strong demand for Bangko Sentral ng Pilipinas’ (BSP) 28-day debt paper resulted in the continued drop of the paper’s interest rate.
Data released by the central bank on Friday showed that the average rate of the debt instrument fell to 1.7844 percent from 1.8221 percent last week.
The BSP again offered the debt paper for PHP100 billion and tenders reached PHP186.61 billion.
This resulted in a bid coverage ratio of 1.8661, higher than the 1.8221 in the previous week.
In a statement, BSP Deputy Governor Francisco Dakila Jr. attributed the strong demand for the paper to “ample liquidity in the financial system.”
“Looking ahead, the BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” he added.
Source: Philippines News Agency
