The Bangko Sentral ng Pilipinas’ (BSP) weekly securities auction netted P100 billion.

According to BSP Deputy Governor Francisco Dakila Jr., the central bank’s one-month BSP bill was oversubscribed by 1.36 times the offered volume of P100 billion, totaling P135.73 billion in offers amid good demand.

Dakila said in a statement that the weighted average interest rate on the 28-day BSP bill remained constant at 1.8158 percent, down from 1.8109 percent last week. The yields accepted at the auction moved somewhat higher as well, while the range narrowed to 1.800-1.835 percent.

“The auction results remain in line with current normal market conditions amid sustained ample liquidity in the financial system. Looking ahead, the BSP’s monetary operations will remain guided by its latest assessment of liquidity conditions and market developments,” he added.

BSP securities are monetary instruments issued by the BSP for its monetary-policy implementation and liquidity-management operations under the interest rate corridor framework.

Along with government-issued securities that may be exchanged for liquidity, the securities would add to the pool of risk-free assets in the financial system.

The issuing of such securities can help with greater price discovery for debt instruments and support monetary policy transmission through frequent auctions of BSP securities.

The Republic Act (RA) 11211 restored the central bank’s right to issue negotiable certificates of obligation, even in normal times. RA 11211, or the “New Central Bank Act of 1993,” was signed into law in February 2019.

Prior to the change, the central bank could only issue debt if there were unusual price swings.

Bangko Sentral Governor Benjamin Diokno previously said that monetary officials were still looking for ways to strengthen the securities and make them more market-friendly.