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July 13, 2024

BSP cuts bond offering, interest rates ease

The Bangko Sentral ng Pilipinas (BSP) reduced the total amount of its bonds (BSP bills) offered on Friday to P160 billion.

Deputy Governor Francisco Dakila Jr. announced a decrease in the allocation mix, with shorter-term (28-day) offerings dropping from P100 billion to P90 billion and longer-term (56-day) offerings from P80 billion to P70 billion.

This move coincided with a decline in interest rates. The average rate for 28-day bonds fell to 6.6595%, while the 56-day rate dropped to 6.6406%.

Despite the reduced offering, total bids reached P210.213 billion.

The acceptable yield range widened slightly for shorter-term bonds (6.6000% to 6.6700%) and narrowed for longer-term bonds (6.6000% to 6.6530%).

The BSP remains committed to adjusting its monetary operations based on liquidity conditions and market developments.

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