The rate of the Bangko Sentral’s 28-day debt paper declined on Friday amid the strong demand for the paper.
Data released by the BSP showed that the average rate of the securities slipped to 1.7135 percent from the previous week’s 1.8487 percent.
The BSP offered the paper for P60 billion and tenders were more than twice at P123.8 billion. The auction committee made a full award.
The bid coverage ratio stood at 2.0633, up from week-ago’s 1.8200, when the paper was offered for P60 billion and bids reached P109.2 billion.
BSP Deputy Gov. Francisco Dakila Jr. has repeatedly said the huge amount of tenders in the weekly debt securities auction of the central bank continues to show that domestic liquidity remains ample.
The central bank continues to look for ways how to manage this huge liquidity, Dakila said, adding that “BSP will continue to refine and recalibrate the overall strategy of its current monetary operations, guided by its assessment of recent market developments and liquidity conditions.”