The Bangko Sentral ng Pilipinas (BSP) on Friday increased its bills offering to P160 billion from P140 billion amid strong demand for longer tenor securities.
The BSP said it approved a higher allocation mix of P100 billion from P90 billion for the 28-day BSP bills and P60 billion from P50 billion for the 56-day tenor.
Total tenders reached P158.772 billion and resulted in bid-to-cover ratios of 0.8x and 1.4x for the 28-day and 56-day tenors, respectively.
Market participants attributed the undersubscription in the shorter-tenor security to their funding requirements for expected loan releases and client withdrawals.
The BSP accepted the P76.169 billion total tenders for the 28-day BSP bills and awarded in full its offering for the 56-day tenor.
The weighted average interest rates increased by 0.22 basis point to 6.6764 percent for the 28-day tenor but decreased by 0.57 bp to 6.6624 percent for the 58-day tenor.
Meanwhile, the range of accepted yields narrowed for both tenors—6.6600 percent to 6.6950 percent for the 28-day BSPB and 6.6500 to 6.6700 percent for the 56-day BSPB.
“Looking ahead, the BSP’s monetary operations will continue to be guided by its assessment of prevailing liquidity conditions and market developments,” the BSP said.