The BSP will offer BSP Securities (Bills and Bonds) beginning on 18 September 2020 as part of its initiative to shift to more market-based monetary operations.
BSP Bills and Bonds will be offered via auction. The auction volumes will be small at the outset, to be gradually scaled up depending on market response and consistent with liquidity forecasts.
The inclusion of BSP Securities issuance in the standard monetary operations of the BSP provides an additional instrument for managing liquidity in the financial system and support the implementation of monetary policy under the Interest Rate Corridor (IRC) framework.
The issuance of BSP Securities is part of the operational enhancements to the IRC framework and does not represent a change in the BSP’s monetary policy stance.
Moreover, 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.
For its initial offering, the BSP will auction 28-day BSP Bills with an indicative offer volume of about P20 billion subject to confirmation two days before the actual auction date.
Further details on BSP Securities issuance may be accessed through the following link: http://www.bsp.gov.ph/moperations/bspsec.as
