BSP RATES ON DEBT SECURITIES DOWN

Ample liquidity has led to a drop in the interest rates for 28-day securities of the Bangko Sentral ng Pilipinas (BSP) even if demand was deemed high.

BSP data showed that the rate of the debt paper declined to 1.9621 percent from 1.9922 percent during the auction last Nov. 6.

The BSP offered the debt paper for PHP60 billion and it was fully awarded.

Tenders reached PHP88.90 billion.

Its bid coverage ratio slipped to 1.4817 from last week’s 2.0288 when tenders amounted to PHP121.725 billion, more than twice the PHP60-billion offer.

In a statement, BSP Deputy Governor Francisco Dakila, Jr. said auction results “continue to show ample liquidity in the financial system.”

“The BSP’s monetary operations will continue to be guided by its assessment of market developments and liquidity conditions going forward,” he added.