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Central bank bills fetch higher yield as demand declines
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BusinessWorld Online
THE AVERAGE YIELD on the Bangko Sentral ng Pilipinas’ (BSP) short-term securities nudged higher for an eighth consecutive week as demand for the offering weakened.
With this, the average accepted rate of the one-month bills inched up by 1.75 basis points week on week to 4.7569% from 4.7394%.
The BSP bills also contribute to improved price discovery for debt instruments while supporting monetary policy transmission.
The central bank began auctioning off short-term securities weekly in 2020, initially offering only a 28-day tenor and adding the 56-day bill in 2023.
Based on its June 2026 Monetary Policy Report, the central bank’s open market operations have siphoned off P1.3 trillion in liquidity from the financial system.