BSP bill rate drops to 5.02 percent

The Bangko Sentral ng Pilipinas (BSP) reported another decline in the yield of its 28-day securities, reflecting sustained liquidity in the financial system and strong appetite for its short-term instruments.

At the BSP bill auction held on 14 November 2025, the weighted average interest rate (WAIR) for the 28-day tenor slipped further by 1.80 basis points week-on-week to 5.0156 percent, based on official auction results. The BSP maintained its offer volume at P100 billion, while total tenders reached P129.48 billion, translating to a bid-to-cover ratio of 1.30x.

The central bank fully awarded the auction, with accepted yields widening to a range of 4.9500 percent to 5.0490 percent. Market participants continue to park funds in BSP bills as a low-risk option while awaiting clearer signals on domestic inflation, liquidity trends, and the BSP’s next policy moves.

The 28-day BSP bill is a key liquidity-management tool used to absorb excess cash from the financial system. The latest yield decline suggests steady demand for central bank securities even as markets monitor global monetary developments and local economic data.