July 4, 2021

Full payment for BSP securities issued on the 28th day

Bangko Sentral ng Pilipinas (BSP) has awarded its debt paper in whole at a lower yield than it originally planned.

According to central bank statistics, the yield on the 28-day BSP securities was 1.8115 percent on Friday, a decrease from the previous week’s yield, which was 1.8158 percent.

In a statement, BSP Deputy Governor Francisco Dakila Jr. said the bank maintained its PHP100 billion offering in the 28-day bill auction, which was granted in whole due to the high level of demand from market players.

The PHP100 billion BSP securities were oversubscribed by PHP158.2 billion, resulting in a net loss of PHP100 billion.

After dropping to 1.3573 the previous week, the bid coverage ratio rose to 1.5820 on Friday.

“The results of the auction demonstrate that there has been a consistently high demand for the BSP bill from market players under normal market circumstances, as well as maintained sufficient liquidity in the financial system,” Dakila added. « Moving ahead, the BSP’s monetary operations will continue to be guided by its most recent assessment of liquidity circumstances and market developments, » the bank said.

With a maturity date of Aug. 3, 2021, the short-term debt paper will be issued on July 6, with the first payment being made on July 6.

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