Manila: The 28-day Bangko Sentral ng Pilipinas bill (BSPB) registered a lower yield in this week's auction as investors continued to show strong appetite for short-term securities, the BSP reported Friday.

According to Philippines News Agency, the central bank noted that the weighted average interest rate (WAIR) for the 28-day tenor decreased by 6.45 basis points week-on-week to 4.9461 percent during the December 5 auction. The BSP maintained the offer volume at PHP90 billion, while total bids surged to PHP137.4 billion. This resulted in a bid-to-cover ratio of 1.53, highlighting sustained liquidity in the financial system.

Due to the strong demand, the BSP fully awarded the offering, with accepted yields ranging from 4.9000 to 4.9900 percent, which was slightly wider than the previous week. Data from the November 28 auction indicated a more moderate bidding turnout compared with the current week's demand.

For the 27-day BSP bill, the central bank kept the offer volume at PHP90 billion, but tenders reached only PHP101.405 billion. Out of this, the central bank awarded PHP81.405 billion, leading to a bid-coverage ratio of 1.1267, which is significantly lower than this week's 1.53 ratio. The weighted average accepted yield last week was higher, settling at 5.0106 percent.