MANILA - The Bangko Sentral ng Pilipinas' (BSP) 28-day securities registered on Friday another rate increase even as demand remained high.
Data released by the central bank showed that the average rate of the debt paper increased to 3.9762 percent from 3.7564 percent during the auction last August 12.
The BSP offered the debt paper for PHP120 billion, lower than the PHP160 billion last week.
Total bids reached PHP147.6 million, thus the full award of the securities.
In a statement, BSP Deputy Governor Francisco Dakila Jr. said yields accepted in this week's securities trading "shifted higher to a range of 3.7500-4.2000 percent."
"The results of the BSP bill auction reflected the increase in the BSP policy rate which was already priced-in partly in the previous auction," he said.
On Thursday, the policy-making Monetary Board (MB) hiked the BSP's key rates by 50 basis points as monetary authorities continue to see the acceleration in domestic inflation rate until around October or November this year.
"Looking ahead, the BSP's monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments," Dakila added. (PNA)