The average yield of the Bangko Sentral ng Pilipinas (BSP) 28-day bills continue to drop to 1.9156 percent from 1.9343 percent while remaining oversubscribed.

“The BSP offered and fully awarded P80 billion (in Monday’s) 28-day BSP bills auction amid strong demand. This led to the continued decline in the weighted average interest rate which settled lower by 1.873 bps (basis points) to 1.9156 percent,” said BSP Deputy Governor Francisco G. Dakila Jr.

Banks’ tenders reached P119.82 billion which is 1.5x of the auction volume. This week’s offer and bids were higher than the previous week’s P109 billion and P70 billion.

The accepted rates continued to “shift lower and narrower” with a range 1.870-1.945 percent, noted Dakila.

“The results of the BSP bill auction remain in line with the general decline in market yields and further support the view that liquidity in the financial system continues to be ample,” he said.

“Market conditions continue to normalize following the issuance of the Retail Treasury Bonds and the Lenten break. Moving forward, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity condition and market developments,” said Dakila.

Source: Manila Bulletin (