Investors were most interested in 10-year and 15-year bonds last week. (Photo: VNA) Hanoi (VNS/VNA) - The yield ofGovernment bonds (G-bond) has continued to decline and hit seven-month lows asthe US Federal Reserve (Fed) seems unlikely to hike interest rates and thedomestic monetary market has shown positive movements.
Reports on the G-bond market by SaigonSecurities Inc showed the local bond market had a very active week endingFebruary 15, with the total bond volume registered to buy four times higherthan that offered.
Onthe primary market, investors paid the most interest on 10-year and 15-year bonds,buying all bonds worth up to 9 trillion VND (386 million USD) offered forauction last week.
The winning yields of bonds at all terms continued to drop compared to theprevious session, with seven-year bonds seeing the largest reduction of 12basis points. The declining rates for 10-year, 15-year and 30-year bonds were10, 9 and 1 basis points, respectively.
The sharp decline of the G-bond yield was also seen in the secondary marketwith a decrease of 9.63 basis points for one-year to 15-year bonds, in whichshort-term bonds posted the highest decline. Specifically, the yields forone-year, three-year, five-year, ten-year and 15-year bonds were reduced to2.61, 3.17, 3.57, 4.63 and 5.0 percent, respectively.
“The yield of G-bonds has declined strongly since the beginning of 2019 and nowreturns to the level of seven months ago,” SSI reported, adding investors haverecently increased bond purchases in both primary and secondary markets with anexpectation of continued decline in yields when there is no longer pressure ofFed interest rate hikes and the domestic monetary market is witnessing positivemovements.
Market liquidity in the bond market alsocontinuously improved last week, with total transaction volume reaching 33trillion VND, an increase of 33 percent compared to the week before the LunarNew Year holiday.
Foreign investors continued to net buy 724 billion VND during the week, ofwhich they poured the most in three-year and five-year bonds with 423 billionVND. The investors meanwhile net sold 382 billion VND for 25-year and 30-yearbonds.-VNS/VNA
Reports on the G-bond market by SaigonSecurities Inc showed the local bond market had a very active week endingFebruary 15, with the total bond volume registered to buy four times higherthan that offered.
Onthe primary market, investors paid the most interest on 10-year and 15-year bonds,buying all bonds worth up to 9 trillion VND (386 million USD) offered forauction last week.
The winning yields of bonds at all terms continued to drop compared to theprevious session, with seven-year bonds seeing the largest reduction of 12basis points. The declining rates for 10-year, 15-year and 30-year bonds were10, 9 and 1 basis points, respectively.
The sharp decline of the G-bond yield was also seen in the secondary marketwith a decrease of 9.63 basis points for one-year to 15-year bonds, in whichshort-term bonds posted the highest decline. Specifically, the yields forone-year, three-year, five-year, ten-year and 15-year bonds were reduced to2.61, 3.17, 3.57, 4.63 and 5.0 percent, respectively.
“The yield of G-bonds has declined strongly since the beginning of 2019 and nowreturns to the level of seven months ago,” SSI reported, adding investors haverecently increased bond purchases in both primary and secondary markets with anexpectation of continued decline in yields when there is no longer pressure ofFed interest rate hikes and the domestic monetary market is witnessing positivemovements.
Market liquidity in the bond market alsocontinuously improved last week, with total transaction volume reaching 33trillion VND, an increase of 33 percent compared to the week before the LunarNew Year holiday.
Foreign investors continued to net buy 724 billion VND during the week, ofwhich they poured the most in three-year and five-year bonds with 423 billionVND. The investors meanwhile net sold 382 billion VND for 25-year and 30-yearbonds.-VNS/VNA
VNA
