Central bank makes full award of short-term securities


THE BANGKO SENTRAL ng Pilipinas (BSP) made a full award of the short-term securities it auctioned off on Friday even as its rate inched up.

The central bank raised P110 billion as planned from its offer of 27-day bills that attracted P130.25 billion in bids. However, demand was lower than the P156.81 billion in tenders offered last week.

The average rate of the one-month securities was 1.7689%, higher than 1.7684% previously. Banks asked for yields between 1.75% and 1.8%, a wider range than last week’s 1.7425% to 1.788%.

The central bank uses short-term securities and its term deposit facility to mop up excess liquidity in the financial system and guide market rates.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message said the average yield of the bills was slightly higher ahead of the release of inflation data next week.

“(Inflation) could pick up due to higher global oil prices among seven-year highs recently amid some disruptions in the global supply chains and ahead of the winter season,” he said, noting that this could be offset by excess liquidity in the financial system.

Reuters on Friday reported that oil prices increased but were headed for the first weekly loss in at least eight weeks after Iran’s top negotiator said nuclear talks could be renewed by the end of November. A deal could lead to the lifting of sanctions on Iran’s oil exports.

Brent crude futures went up 27 cents or 0.3% to $84.59 a barrel, while US West Texas Intermediate crude futures increased by 12 cents or 0.1% to $82.93 a barrel. — Jenina P. Ibanez with Reuters

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