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Central Bank increases security bill

The auction received good demand from eligible participants, with tenders amounting to P172.945 billion or about 1.24x the volume offers

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The central bank has increased the offer volume for issuing the 28-day bill to P140.0 billion from P130.0 billion last week, an official said.

“The auction received good demand from eligible participants, with tenders amounting to P172.945 billion or about 1.24 times the volume offers. The weighted average interest rate increased by 14.362 bps (basis points) to 2.3183 percent,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila Jr. said.

The accepted yield range likewise shifted higher and widened from 2.0875 percent to 2.4950 percent.

Meanwhile, the central bank official also said that the results of the 28-day bill auction reflect in part the 25-bps hike in the BSP policy rate, which became effective today.

“Nevertheless, liquidity in the financial system remained ample. Going forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” Dakila added.

For his part, chief economist Michael Ricafort of Rizal Commercial Banking Corp. told Daily Tribune that “the BSP 28-day securities auction yield again higher week-on-week: 0.1436 to 2.3183 percent; a day after the widely expected 0.25 hike in local policy rates; higher global oil prices recently to among 1.5-month highs, approved minimum wage hikes that could lead to higher inflation.”

“Total bids P172.945 billion, higher than the previous auction’s P151.78 billion; also higher than the total offering of P140 billion, which was fully awarded,” the economist added.

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