The Bangko Sentral ng Pilipinas (BSP) raised P90 billion from the latest auction of its own securities, proving that there is still enough money in the domestic financial system.
BSP data showed that its one-month BSP Bill was oversubscribed by 1.47 times the offered volume of $90 billion, with total bids reaching P131.97 billion.
This week’s offer volume is higher by P10 billion compared to last week’s auction. Total tenders last week reached P114.176 billion
“The auction results remain in line with the observed market normalization amid continued ample liquidity in the financial system,” BSP Deputy Governor Francisco Dakila Jr. said.
With the strong demand, the weighted average interest rate continued to slide, settling lower by 2.324 basis points to 1.8562 percent, and the accepted also shifted lower and narrower, ranging from 1.838 to 1.875 percent.
The BSP, however, is not disturbed.
“The BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” Dakila said.BSP securities are also issued as a liquidity-management tool. SOVEREIGNPH