The auction of Bangko Sentral ng Pilipinas (BSP) securities continue to be both oversubscribed but with a lower yield.

 On Friday, the BSP fully awarded its P90-billion 28-day offer of BSP bills. It fetched a rate 1.8286 percent versus 1.8562 percent previously.

 Bids reached P145.25 billion which was lower compared to last week’s P131.98 billion. The total tenders received were 1.61x more than the P90 billion offer.

 BSP Deputy Governor Francisco G. Dakila Jr. said the BSP kept its offer volume at P90 billion with a still strong demand from banks. “The weighted average interest rate continued to decline, settling 2.767-bp (basis point) lower than last week’s rate to 1.8286 percent. The yields accepted continued to shift lower, ranging from 1.793-1.844 percent,” he said.

 Dakila said there is ample liquidity in the financial system “amid normalized market conditions”. The bid coverage ratio, in the meantime, continue to improve to 1.6139 from 1.4664 versus last April 16.

Source: Manila Bulletin (