Short-term securities of the Bangko Sentral ng Pilipinas (BSP) fetched lower average rates on Friday as demand for the offerings remained strong.
The 28-day BSP bills attracted bids worth P164.166 billion, which was higher than the P90 billion auctioned and P129.759 billion in tenders for the same offer volume a week earlier. This implies a bid-to-cover ratio of 1.8241 times, which is higher than the 1.4418 ratio seen last week.
The central bank awarded the full P90 billion of its proposal.
The approved rates ranged from 4.724% to 4.78%, down from 4.65% to 4.85% last week. With this, the average acceptance rate of one-month papers fell by 6.03 basis points to 4.7496% from 4.8099%.
BSP has not auctioned 56-day bills for almost three months or since November 3.
The central bank uses BSP securities and its term deposit facility to eliminate excess liquidity in the financial system and better guide short-term market yields to its policy rate.
BSP data showed that about 50% of its market operations are done through short-term bills.
Based on central bank data, by mid-November 2025, the BSP's monetary operations have siphoned off P1.5 trillion in liquidity.
Of the total, 42.4% was absorbed through BSP securities, 34.6% through overnight reverse repurchase agreements, 17.6% through the overnight deposit facility, and 5.4% through the fixed deposit facility.
The BSP Bill also contributes to better price discovery for debt instruments while supporting monetary policy transmission.
In August 2025, BSP Governor Eli M. Remolona, Jr. said that they are gradually moving away from issuing short-term paper to manage liquidity as they seek to boost activity in the money market.
The central bank began auctioning short-term securities weekly in 2020, initially offering only 28-day tenors and adding 56-day bills in 2023. Katherine K. chan