BSP short-term yields mixed, two-mo bills undersubscribed

Yields on Bangko Sentral ng Pilipinas' (BSP) short-term securities ended mixed on Friday with the two-month bills undersubscribed.

On Wednesday, TDF yields also ended mixed following the BSP's surprise decision to keep interest rates steady last week.

For the 28-day BSP bills, tenders reached P88.323 billion, above the offer of P70 billion but below last week’s P74.195 billion in bids.

The one-week TDF fetched bids amounting to P119.864 billion, above the auctioned-off P110 billion and the previous week's P111.375 billion.

Tenders for two-week papers were lower at P83.688 billion compared to the offered P110 billion and last week’s P129.816 billion.

BSP Deputy Governor Francisco G. Dakila, Jr., noted that total offerings were higher than previous weeks but received slightly fewer bids overall.

The central bank uses these securities and its term deposit facility to manage liquidity in the financial system and guide market rates effectively.