The central bank’s auction of 28-day securities on Friday was undersigned, with total bids totaling just 109.469 billion pesos, compared to 120 billion pesos in the offer.
According to Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakil Jr., the bids were “0.91 times the volume offered.” says in the statement.
The weighted average interest rate continued to rise compared to the previous week, increasing by 20.2627 basis points to 6.0031 percent.
Similarly, the allowable yield moved higher, but narrowed marginally to a range of 5.7950 to 6.2000 percent.
“The undersubscription…may be due to the growing demand for cash from relevant counterparties in connection with the preparations for the December holidays,” said Dakila.
“Going forward, BSP’s monetary operations will continue to be guided by its assessment of recent liquidity conditions and market developments,” he added.