Money

BSP to issue bonds starting Sept. 18

The central bank will tap its newfound authority to issue bonds and bills.

The central bank will tap its newfound authority to issue bonds and bills.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the first tranche of 28-day BSP bills would be up for auction on September 18.

He said this was part of BSP’s effort to mop up excess liquidity in the market.

“The auction volumes will be small at the outset, to be gradually scaled up depending on market response and consistent with liquidity forecasts,” Diokno said in a statement.

“The issuance of securities by the BSP will add to the existing supply of risk-free financial instruments in the banking system, which in turn could help in the development of the local bond market,” he added.

The BSP’s Treasury Department will be busier than ever, as these new auctions will be on top of the weekly term deposit facility offerings and the overnight funding windows.

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