Yields on BSP securities go down following latest cut in benchmark rates

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) short-term securities ended lower on Friday after it delivered its third straight rate cut.

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The BSP bills fetched bids amounting to P83.946 billion on Friday, well below the P120-billion offer as both tenors were undersubscribed. However, this was higher than the P59.557 billion in tenders for the P100 billion auctioned off the week prior.

The central bank accepted all the submitted bids for the one-month and two-month securities.

Broken down, tenders for the 28-day BSP bills reached P39.812 billion, below the P50-billion placed on the auction block but above the P17.921 billion in bids seen for the P40 billion offered the prior week.

Accepted yields were from 5.16% to 5.41%, a wider and lower range compared to the 5.34% to 5.42% margin seen a week prior. With this, the weighted average accepted rate of the one-month securities fell by 4.56 basis points (bps) to 5.3328% from 5.3784% previously.