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Gov't mulls sales of more short-term debt

Update: November, 25/2015 - 08:03

Staff at the Ha Noi Stock Exchange check results of a bond auction. — VNA/VNS Photo Tuan Anh

HA NOI (VNS) — Three-year bonds might continue to be issued until the end of this year as the Government attempts to balance the budget deficit, said the latest bond report from Bao Viet Securities Company (BVSC).

BVSC also saw a high market demand for three year bonds, predicting that the coupon rate would be around 5.9 per cent.

The State Treasury offered VND7 trillion (US$311.1 million) worth of three-year bonds last week that sold out for the first time this year at the coupon rate of 5.9 per cent per. It also sold all of the 5-year bonds on offer at the coupon rate of 7.45 per cent.

However, the treasury could only offload two per cent of the VND500 billion ($22.22 million) in 10-year bonds on offer.

According to the Ha Noi Stock Exchange, the treasury would issue more short-term bonds including VND6 trillion ($266.6 million) in three year bonds and VND1 trillion ($44.44 million) in 15 year bonds on November 25.

BVSC said it was no surprise to see three year bonds drawing great attention from investors.

The Ministry of Finance reported that the treasury had sold bonds worth about VND127.43 trillion ($5.66 billion) during the first nine months, representing only half of the annual target and 60 per cent recorded in the same period last year.

The report also said that the market was waiting for the National Assembly's comments on a Government proposal to extend more short term bonds besides bonds with terms of at least five years. — VNS

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