After making net withdrawal on open market operations (OMO) in previous week, the State Bank of Vietnam (SBV) switched to net injection of 437 billion dong in week between July 9 and 13, according to Bao Viet Securities Joint Stock Co (BVSC)’s report.
The report said the central bank’s total injection for the whole week was 1.213 trillion dong and the total amount of money falling due was 776 billion dong.
Thus, last week, the central bank posted a net injection of 437 billion dong on OMO after a net withdrawal of 319 billion dong in the previous week.
During the week, transactions on OMO occurred mainly in three days (July 10, 11 and 13), of which, the net injection was made in the last session on July 13 with a total amount of up to 1.065 trillion dong.
The interbank interest rate tended to fall in all terms due to lower capital demands against the first week of July. Particularly, the overnight interest rate was popularly at 3.5-4.75 percent per annum (p.a.), one week at 4.25-5.75 percent p.a. and one month at 5.4-7.75 percent p.a. In comparison with late previous week, the interbank interest rate decreased by 0.75-1.25 percentage points.
In the preliminary bond market, last week, the State Treasury raised total 1.15 trillion dong of the total offered volume of five trillion dong. The yield for 3-, 5- and 10-year tenor bonds stood at 9.5 percent p.a., 9.75 percent p.a. and 9.9 percent p.a. respectively.
The secondary market remained gloomy. The total transaction volume reached 2.208 trillion dong, down over 1 percent over the previous week. Transactions were still mainly for less than 3-year tenor bonds (accounting for 88 percent of the total transaction volume). The coupon rate of government-backed bond for 1-, 3-, 5-, and 10-year tenor bonds increased 5, 26, 30 and 16 basic points respectively.