THE BANGKO SENTRAL ng Pilipinas (BSP) sold P70 billion in one-month securities on Friday despite the uptick in accepted yields as demand remained high.
Bids for the 28-day bills offered by the BSP on Friday reached P96.2 billion, higher than the P70 billion on the auction block as well as the P77.45 billion in tenders seen the previous week.
Accepted yields for the one-month debt papers ranged from 1.85% to 2.0499%, a narrower range compared to the 1.84% to 2.15% band seen a week ago. This caused the average rate of the papers to settle at 1.963%, higher by 1.86 basis points (bp) from the 1.944% seen at last week’s auction.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the rise in the yields of the BSP’s short-term bills reflected the trend seen in the US government bonds.
“The 28-day BSP securities auction yield continued to go up amid the latest rising trend in the benchmark 10-year US government bond to new 14-month highs after the Fed estimated higher inflation,” Mr. Ricafort said in a text message.
Yields on US Treasury bonds picked up on Thursday, with the 10-year note’s rate rising to 1.754% from 1.7099% previously.
At home, yields on other government papers have also been rising in the past weeks. The Bureau of the Treasury’s three-month, six-month, and one-year papers saw their average rates pick up by 9.3 bps, 21.1 bps, and 13.8 bps, respectively, at this week’s auction.
Meanwhile, the central bank’s seven- and 14-day term deposits logged average rates 13.07 bps and 2.95 bps higher than the previous auction. — LWTN with Reuters