BSP invoices, still oversubscribed – Manila Bulletin
The auction of the securities of Bangko Sentral ng Pilipinas (BSP) was oversubscribed by 1,235 times last Friday (September 17) in a context of sustained and sustained demand from banks, according to BSP Deputy Governor Francisco G. Dakila Jr.
Dakila said the 28-day BSP bills still have a supply volume of 110 billion pesos that has been allocated in full.
“The invoice auction was oversubscribed as the total bids reached 135.80 billion pesos or the equivalent of about 1.235 times the volume offered,” he said. Friday’s offer was lower than the offers of 137.82 billion pesos on September 10. The offer coverage ratio fell to 1.2345.
28-day BSP bills hit a weighted average interest rate of 1.7190%, up 0.088 basis points week-over-week. The range of accepted yields was virtually unchanged at 1.7000 percent to 1.7400 percent from the previous auction.
“The results of the auction remain in line with normal market conditions prevailing in the context of abundant and sustained liquidity in the financial system,” said Dakila. “Looking ahead, BSP’s monetary operations will continue to be guided by its latest assessment of liquidity conditions and market developments,” he reiterated.
The BSP increased the volume of the securities facility this month from 100 billion pesos to 110 billion pesos. It was the first time since April this year that the offer of BSP invoices was adjusted. The highest bid for this year was 120 billion pesos.
BSP invoices were introduced in September last year as another liquidity cleaning facility to help the BSP control and manage inflation. Since the start of the pandemic, the BSP has released about 2.3 trillion pesos of bank liquidity into the financial system.
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