The Bangko Sentral ng Pilipinas (BSP) has generated P60 billion from its weekly auction of its own securities. Data from the central bank showed on Friday that its offer of P60-billion securities was twice oversubscribed after attracting bids worth P121.72 billion. BSP securities are monetary instruments issued by the central bank under the interest rate corridor framework for its monetary policy implementation and liquidity management operations. “Through the regular auction of BSP securities, the issuance of [such] securities can contribute to improved price discovery for debt instruments and support monetary policy transmission in the process,” it said. The Bangko Sentral’s authority to issue negotiable certificates of indebtedness, even in normal times, was restored by Republic Act (RA) 11211.

Source: Manila Times November 07, 2020 16:18 UTC