Connect with us

Hi, what are you looking for?

Economy

Central bank awards P100 billion in 28-day bills

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded P100 billion in short-term securities on Friday as the financial system remains flush with liquidity.

The BSP’s offer of 28-day bills was oversubscribed as tenders reached P150.9 billion. However, Friday’s bids were lower than the P162.8 billion in demand seen last week.

“The sustained robust demand for the BSP bills shows that financial system liquidity remains ample as cash demand continues to normalize,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

The BSP has made full awards of its offer of 28-day bills for 18 consecutive auctions since it launched its weekly securities auctions in September.

Rates for the bills ranged from 1.6% to 1.63%, a slightly wider band than the 1.6285% to 1.645% logged a week earlier. This caused the average rate for the papers to settle at 1.6251%, slipping by 1.11 basis points (bps) from the 1.6362% logged on Jan. 22.

The 28-day securities and term deposits are among tools used by the central bank to gather excess liquidity in the financial system and to better guide short-term market interest rates.

“The 28-day BSP securities auction yield continued to ease after the latest contraction in GDP (gross domestic product) data, though with smaller contraction versus the previous quarter,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The economy shrank by 8.3% in the fourth quarter of 2020, bringing the full-year decline to 9.5%, data from the Philippine Statistics Authority showed.

The central bank’s easing measures amid the crisis infused about P2 trillion in liquidity into the financial system last year, which is equivalent to about 10% of the GDP. — LWTN

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Keisha B. Ta-asan, Reporter PHILIPPINE BANKS will continue to see improved profits this year, supported by better margins following the central bank’s rate...

Economy

THE PHILIPPINE government’s move to grant value-added tax (VAT) refunds for foreign tourists is expected to boost the tourism industry’s recovery from the coronavirus...

Economy

By Luisa Maria Jacinta C. Jocson, Reporter THE GOVERNMENT should diversify its major growth drivers to rely less on consumption as household spending is...

Economy

By Arjay L. Balinbin, Senior Reporter SMEC Philippines, Inc., a unit of Singaporean infrastructure and urban development consultancy company Surbana Jurong Group, said it...

Economy

THE Securities and Exchange Commission (SEC) warned the public against putting money in three entities, which are soliciting investments without first securing a license....

Economy

DMCI Holdings, Inc. and Union Bank of the Philippines are seen to improve their liquidity and stock valuation after their re-entry to the Philippine...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.