BSP securities rates up, 56-day tenor posts undersubscription

The rates of Bangko Sentral ng Pilipinas' (BSP) bills rose on Friday, but the 56-day tenor attracted lower bids. Data released by the central bank showed that the average rate of the 28-day paper inched up to 6.7108 percent from 6.7048 percent during the auction last July 28. The rate of the 56-day paper also increased to 6.7356 percent from last week's 6.6999 percent. The BSP lowered the offer volume for both tenors by PHP10 billion each to PHP100 billion for the 28-day paper and to PHP30 billion for the longer tenor. Bids for the shorter-dated facility amounted to PHP112.505 billion and the auction committee made a full award. Meanwhile, tenders for the 56-day tenor only amounted to PHP22.855 billion, which the auction committee fully accepted. In a statement, BSP Deputy Governor Francisco Dakila Jr. traced banks' preference for the shorter-dated bills to 'the need to tend to client requirements.' 'The BSP's monetary operations will continue to be guided by its assessment of prevailing liquidity conditions and market developments,' he added

Source: Philippines News Agency