During yesterday’s price setting auction, the debt papers maturing in 2021 fetched a coupon rate of 4.875 percent, 17.2 basis points higher than the previous rate of 4.703 percent. Healthy demand met the price setting auction, as total tenders amounted to P92.79 billion. De Leon said the 4.875 percent coupon rate would provide good returns to investors considering the recent rate hike by the Bangko Sentral ng Pilipinas (BSP) and the high inflationary environment. Sought for comment, a local trader said the coupon rate awarded by the BTr is well within the expectation of the market. The trader also said the demand was expected as there is reinvestment demand following the settlement of P130 billion in maturities last week.

Source: Philippine Star May 30, 2018 15:45 UTC