Tue. May 11th, 2021

The Bangko Sentral ng Pilipinas (BSP) has raised P120 billion from the weekly auction of its own securities, demonstrating anew that the local financial system is not starved of cash.

(PHOTO: Banko Sentral ng Pilipinas)

Central bank data on Friday showed that BSP’s offer of P120 billion securities was 1.24 times oversubscribed after receiving bids worth P148.81 billion.

But the BSP fully awarded only P120 billion worth of one-month bills.

In a statement, BSP Deputy Governor Francisco Dakila Jr. said the results “reflect very ample liquidity in the financial system.”

However, the weighted average interest rate for the securities contracted by 1.276 basis points to 1.6124 percent week-on-week. The accepted yields were lower and narrower, ranging from 1.600 to 1.624 percent, Dakila said.

“Looking ahead, the BSP’s monetary operations will remain guided by its assessment of liquidity conditions and market developments,” he said.

Bid coverage ratio stood at 1.2401 of the latest offering, lower than last week’s 1.5090 when the P100 billion offer was met with tenders amounting to P150.9 billion. SOVEREIGNPH

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