Short‑term securities issued by the central bank finished Friday with a modest rise in average yield as bid volumes fell compared to the previous week.
The auction for 28‑day bills attracted P43.39 billion in tenders, surpassing the P40 billion placed for sale but remaining below the P62.179 billion recorded in the prior week. The bid‑to‑cover ratio fell to 1.0848 from 1.5545.
The bank awarded P39.5 billion of the bids, with accepted yields ranging from 4.7200 % to 4.7600 %. The weighted average accepted rate increased by 0.59 basis points to 4.7394 %, up from 4.7335 %.
Central bank operations use these securities and a term deposit facility to absorb excess liquidity and steer short‑term market yields toward the policy rate.
The bills also enhance price discovery for debt instruments and reinforce the transmission of monetary policy.
Weekly auctions began in 2020 with a 28‑day tenor, expanded to include a 56‑day bill in 2023, and have since been streamlined to a single tenor to simplify liquidity management.
The latest monetary policy report indicates that open‑market operations have removed P1.3 trillion of liquidity, with 19.2 % captured through securities, 52.3 % via overnight reverse repos, 21.5 % through overnight deposits, and 6.9 % from the term deposit facility.
