Vietnam Bank for Social Policies (VBSP) failed to sell any of VND1 trillion worth of government bonds distributed equally for 3-year and 5-year tenors, auctioned on November 4, said the Hanoi Stock Exchange on its website.
The bid-to-cover ratio was 0 as no bidders registered to take part in the auction, causing none of government bonds to be sold.
Meanwhile, Vietnam Treasury sold VND1.1 trillion worth of government bonds, or 55 percent of offered value in an auction of 3-year and 5-year bonds held on November 3 where it managed to sell VND350 billion of 5-year bonds, and VND750 billion of 3-year bonds with fixings for 3-year and 5-year bond yields unchanged from the latest auction at 12.1 percent and 12.15 percent p.a., respectively.
The central bank was reported to pump as much as VND32.378 trillion via open market operations to support liquidity to local banks from October 31 to November 4. For the whole week, the agency net injected VND1.166 trillion, as compared to the net withdrawal of VND15 trillion in the previous week.
The interbank interest rates as of November 4 fell to 13-13.5 percent p.a. for overnight, 14-14.5 percent for 1-week and 17 percent for 1-month term.
This is not the unusual failure of the government bond auction as the VBSP was also unable to sell any of VND1.6 trillion worth of 3-year and 5-year government bonds in two previous auctions on October 14 and September 30.