56-day BSP bills to be offered on June 30

MANILA, Philippines — The Bangko Sentral ng Pilipinas said Friday it would start offering 56-day bills this month.

In a statement, the central bank said it will begin floating 56-day BSP Bills on June 30 as part of its ongoing initiatives to enhance its monetary operations under the Interest Rate Corridor (IRC) framework.

The 56-day BSP Bill, which is an additional tenor under its securities facility, will be offered alongside the 28-day BSP bill.

Similar to the 28-day BSP Bills, the 56-day securities will be offered via auction to eligible counterparties, with the volume initially set in small amounts before being gradually scaled up as market liquidity conditions allow.

The initial offer volume for the 56-day BSP bill will be announced two days before the inaugural auction this month consistent with current practice for the 28-day BSP bill.

“The introduction of the 56-day BSP Bill expands the range of BSP’s term instruments and increases the BSP’s flexibility to respond to changing liquidity conditions while providing additional guidance to short-term market interest rates,” the central bank said.

“Its introduction supports the BSP's efforts towards a more flexible and market-based approach to managing liquidity in the financial system, in line with its overall thrust to promote price and financial stability,” it added.