Both were higher compared to the previous week’s offer and tenders of P100 billion and P120.93 billion, respectively.
BSP Deputy Governor Francisco G. Dakila Jr. said offer was fully awarded “amid good demand from market participants.”
He also said that the “results of the BSP bill auction remains in line with the BSP’s view that market conditions remain normal and financial system liquidity continues to be ample.”
The May 21 BSP bills auction had a bid coverage ratio of 1.2282, more than the previous week’s 1.2093 indicating more market appetite for BSP securities.
BSP bills with just the lone tenor of 28-days was first offered in September 2020.
BSP securities are “monetary instruments issued by the BSP for its monetary policy implementation and liquidity management operations to steer short-term market interest rates towards the policy rate and influence liquidity conditions in the financial system.”
The revised BSP Charter, signed into a new law in 2019, restored the BSP’s authority to issue its own debt instruments as a crucital part of its monetary operations and liquidity management.
Since September last year, only BSP bills are issued because of market preference for short-term tenors. The BSP has yet to issue BSP bonds. “(BSP) bonds with longer maturities are offered when there is persistent structural excess liquidity,” said the BSP.
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