Mid-Aug auction raises 168 million USD from G-bonds

Hanoi (VNA) – The Hanoi Stock Exchange (HNX) raised 3.91 trillion VND (168.5 million USD) at the latest auction of Government bonds (G-bonds) issued by the State Treasury earlier this week.

The auction aimed to sell 5.5 trillion VND (237 million USD) worth of G-bonds with 5-year, 7-year, 10-year, 15-year, and 20-year maturity.

The interest rates of bonds successfully sold this time continued to rise slightly from previous auctions.

Bonds with 5-year maturity raised at 100 billion VND (4.3 million USD) with the annual yield rate of 3.5 percent, up 0.05 percent against the auction on July 18.

Bonds with 7-year term fetched 10 billion VND (431,125 USD) with the annual interest rate of 3.9 percent, the same as the previous auction on August 1.

Those with 10-year maturity raised 2 trillion VND (86.22 million USD) at the annual rate of 4.57 percent, an increase of 0.04 percent from the August 8 auction.

As many as 1.8 trillion VND (77.6 million USD) was mobilised from 15-year bonds at the interest rate of 4.84 percent per year, up 0.03 percent from the August 8 auction

There were no successful bids for 20-year bonds.

From the beginning of 2018, the State Treasury mobilised over 100.16 trillion VND (over 3.96 billion USD) through G-bond auctions at the HNX.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes from last year thanks to economic growth of more than 6.7 percent and inflation 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 risen lately, after a long period of decline throughout 2017 and the first four months of 2018. –VNA