The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines maintained the Php100 billion offering in the 28-day bill auction, which was awarded in full amid strong interest from market participants,” BSP Deputy Governor Francisco Dakila Jr. said.

The central bank’s one-month BSP bill was oversubscribed by 1.58 times the offered volume of P100 billion, resulting in a total of P158.20 billion in bids.

In a statement, the governor said that the weighted average interest rate on the 28-day BSP bill remained stable at 1.8115 percent, down from 1.8158 percent last week. During the auction, the yields accepted shifted marginally lower and remained narrow at 1.780-1.825 percent.

“The results of the auction show continued strong demand from market participants for the BSP bill amid normal market conditions and sustained ample liquidity in the financial system,” Dakila added.

He further said that the BangkoSentral’s monetary operations will continue to be guided by its most recent assessment of liquidity conditions and market developments in the future.

BSP securities are monetary instruments issued under the interest rate corridor framework for its monetary-policy implementation and liquidity-management operations.

The securities would also add to the pool of risk-free assets in the financial system, alongside those issued by the government that can be traded for liquidity purposes.

Through the regular auction of BSP securities, the issuance of such securities can contribute to improved price discovery for debt instruments and support monetary policy transmission in the process.