G-bonds see higher interest rates

June, 22/2018 - 14:49

Government bonds fetched higher interest rates for all maturity terms at the latest auction conducted by the Hà Nội Stock Exchange (HNX) on June 20.

The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year thanks to economic growth of more than 6.7 per cent and inflation of below 4 per cent. — Photo investopedia.com
Viet Nam News

HÀ NỘI – Government bonds fetched higher interest rates for all maturity terms at the latest auction conducted by the Hà Nội Stock Exchange (HNX) on June 20.
A total of VNĐ4.3 trillion (US$187.9 million) worth of bonds were sold at the transaction out of the VNĐ6 trillion offered, including VNĐ100 billion in five-year bonds with an annual interest rate of 3.1 per cent, representing a 0.1 per cent increase from the interest rate fetched at the previous auction on May 23.

VNĐ2.4 trillion in 10-year bonds was raised at an interest rate of 4.35 per cent per annum, up 0.03 percentage from the previous auction on June 13. 
Meanwhile, VNĐ1.8 trillion worth of 15-year bonds were sold at an interest rate of 4.68 per cent per annum, up 0.03 percentage from June 13. 
The auction saw no sales of 7-year, 20-year, and 30-year G-bonds. 
The State Treasury has raised VNĐ70.181 trillion ($3 billion USD) from auctions of government bonds at the HNX, the northern bourse said. 
Interest rates on government bonds have been on the rise lately, after a long period of decline throughout 2017 and the first four months of 2018. The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year thanks to economic growth of more than 6.7 per cent and inflation of below 4 per cent.

The value of G-bonds issued in 2018 is estimated at some VNĐ180 trillion ($7.92 billion), with the focus being on long-term maturity and keeping interest rates low. – VNS  

 

 

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