The Philippine central bank fully awarded the short-term debt it offered on Friday as rates dipped听after听last-minute changes to听the country鈥檚 lockdown status.听
The听Bangko听Sentral听ng听Pilipinas听(BSP) raised P110 billion听from听28-day bills, as total bids reached P137.82 billion.听
The auction was 1.25 times oversubscribed, but the demand听fell听from P148.05 billion听at the auction last week.听Yields sought for the听securities听ranged from 1.7% to 1.742%, wider听than听1.713%-1.728%听last听week.听
The bills fetched an average rate of 1.718%,听compared with听1.719%听a听week听ago.听
鈥淭he auction results continue to show that market conditions remain normal, supported by ample liquidity in the financial system,鈥澨鼴SP Deputy Governor Francisco G.听Dakila, Jr. said in an e-mailed听statement.听
鈥淭he BSP鈥檚 monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,鈥 he added.听
Rates of听short-term debt eased听after the government extended the听strict lockdown in Metro Manila for another听week,听said听Michael L.听Ricafort, chief economist at听Rizal Commercial Banking Corp.听
Earlier this week,听presidential spokesman听Herminio听L. Roque, Jr. said Metro Manila听would听be under a modified enhanced community quarantine until Sept. 8, reversing听a听plan听for targeted lockdowns.听
This sparked outrage from small businesses, especially restaurant owners who听had听prepared to open their stores and stock up on inventories.听
The country is facing its worst coronavirus outbreak听since the pandemic started last year, caused by a more contagious听Delta variant.听
The听Health听department reported 17,964 new coronavirus infections on Friday, pushing the total active cases to 175,470.听
A stronger peso听against the听dollar听had听also helped pull down the yields on the short-term听debt, easing听inflationary pressures via cheaper import prices, Mr.听Ricafort听said.听鈥 Beatrice M.听Laforga听
