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Banking & Finance

Monthly government bond trading down 50%

Released at: 09:59, 03/09/2015

Monthly government bond trading down 50%

Primary market sales fall 49.9% in August against July while secondary market sees rise of 34.3%.

by Hung Nguyen

Auctions of government bonds in the primary market proceeded as planned in August but results were down significantly against July.

The Hanoi Stock Exchange held 30 sessions that mobilized over VND7.83 trillion ($348.2 million), a decline of 49.9 per cent compared with July. The State Treasury mobilized VND4.2 trillion ($186.77 million), the Vietnam Bank for Social Policies (VBSP) VND1.3 trillion ($57.81 million), the Vietnam Development Bank (VDB) VND329 billion ($14.63 million), and Hanoi People’s Committee VND2 trillion ($88.94 million).

The winning rate on three-year bonds was from 6.25 to 6.30 per cent per annum, 6.4 to 7.20 per cent per annum on five-year bonds, and 7.65 to 8 per cent per annum on 15-year bonds. Compared to July the three-year bond rate increased around 0.3 per cent per annum while the five-year and 15-year rate remained the same.

In the secondary market, total trading during August reached 430 million bonds worth VND46.2 trillion ($2.05 billion), an increase of 34.3 per cent against July. Total repos trading stood at 208 billion bonds worth VND20.8 trillion ($924.97 million), a decline of 29.3 per cent against July.

In the secondary market for Treasury bills in August, total trading reached 7.5 million worth VND737 billion ($32.77 million). There was no repos trading for Treasury bills during the month.

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