BSP announces 56-day bill offering 

A 56-day Bill will be offered by the Bangko Sentral ng Pilipinas (BSP) starting June 30, 2023 as part of the central bank’s move to further improve monetary operations under the Interest Rate Corridor (IRC) framework, according to a report by Philippine News Agency.

The new tenor will be offered together with the 28-day debt papers which is being auctioned on Fridays.

BSP said initial offering will be “set in small amounts before being gradually scaled up as market liquidity conditions allow.”

Just like the existing policy, offer volume of the 56-day Bill will be announced two days prior to its auction.

The central bank said offering of the 56-day securities “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.”

“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.

BSP adopted the IRC framework since June 3, 2015 in a bid to guide short-term market rates towards the central bank’s policy rate.