MANILA - Strong demand for the Bangko Sentral ng Pilipinas' (BSP) 28-day bill resulted in the rise of the debt paper's interest rate on Friday.

Auction results released by the central bank showed that the average rate of the bill rose to 6.3584 percent from 6.3545 percent during the auction last Jan. 27.

The BSP lowered the offer volume in this week's auction to PHP150 billion from last week's PHP190 billion.

The auction committee made a full award after tenders amounted to PHP167.222 billion.

In a statement, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila Jr. said yields accepted in this week's bill auction "shifted higher but narrowed to a range of 6.2000-6.4100 percent."

"The results of the BSP bill auction came amid strong demand from market participants who had previously noted that they would be reallocating some of their assets towards the BSP bill," he said.

He added the central bank's "monetary operations will continue to be guided by its assessment of the prevailing liquidity conditions and market developments." (PNA)