G-bonds raise over 3 billion USD in first half of year hinh anh 1Monitoring bond auctions at the Hanoi Stock Exchange (HNX). (Photo: VNA)

Hanoi (VNA) – The State Treasury of Vietnam raised about 4.4 trillion VND (more than 190.7 million USD) in the last Government bond (G-bond) auction of June, according to the Hanoi Stock Exchange (HNX).

The amount brought the total funds collected from G-bond auctions in the first half of 2018 to nearly 74.6 trillion VND (3.23 billion USD).

The HNX said the auction it held on June 27 was a success as it sold 73.33 percent of the total volume offered, despite interest rates continuing to rise for all maturity terms.

The auction looked to sell 6 trillion VND, or 260.1 million USD, worth of G-bonds with 5-year, 7-year, 10-year, 15-year, 20-year and 30-year maturity.

As much as 2.1 trillion VND (91 million USD) was mobilised from 10-year bonds with an annual interest rate of 4.37 percent, up 0.02 percent from that of the previous auction on June 20.

Bonds with 15-year maturity were sold for a total of 1.8 trillion VND (78 million USD) with an annual yield rate of 4.7 percent, 0.02 percent higher than that of the June 20 auction.

As for 20-year bonds, 500 billion VND (21.68 million USD) was raised at an interest rate of 5.2 percent per annum, an increase of 0.02 percent from that of an auction on June 13.

No bonds of 5-year, 7-year and 30-year maturity were sold.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes from last year thanks to the economic growth of more than 6.7 percent and inflation of below 4 percent. It expects the value of G-bonds issued this year to reach 180 trillion VND (7.92 billion USD).

Last year, Vietnam sold some 159.9 trillion VND, or 7.03 billion USD, worth of G-bonds with average maturity of 13.52 years and annual interest averaging 6.07 percent, down 0.2 percentage points against 2016.

The interest rates of Government bonds have been on the rise lately, after a long period of decline throughout 2017 and the first four months of 2018.-VNA