The month-long securities offered by the Bangko Sentral ng Pilipinas received strong demand from investors a day after the key interest rate was raised by another 50 basis points to a 14-year high of 6 percent.
The weekly 28-day bill offering, which was earlier lowered to P140 billion from P170 billion, received a total tender of P202.364 billion, or equivalent to 1.445 times the volume offered.
The BSP accepted P140 billion, with the weighted average interest rate rising by 9.0626 basis points to 6.4707 percent. The yields accepted shifted higher and widened to a range of 6.3250 percent to 6.5985 percent.
BSP Deputy Governor Francisco Dakila Jr. said the results of the BSP bill auction reflected strong demand from market participants, following the BSP’s latest policy decision to raise its key policy rate by 50 bps.
“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of the prevailing liquidity conditions and market developments,” Dakila said.