The Vietnam Bank for Social Policies (VBSP) will open an auction for 2 trillion dong worth of government bonds, distributed equally for 3-year and 5-year tenors at the Hanoi Stock Exchange (HNX) on June 14.
These bonds will be issued on June 18, 2012 and mature on June 18, 2015 for 3-year and June 18, 2017 for 5-year tenors. Coupons are paid annually on the issuance anniversaries while principle is paid once at maturity.
Yields on 5-year debts climbed 0.05 percent to 9.5 percent, snapping an eight-day advance, as a surge in the local money-market rate sapped demand, according to Bloomberg.
The overnight rate on the interbank market rose 0.83 percent to 3.25 percent, the highest level since May 11, the State Bank of Vietnam (SBV)’s data showed. The rate has gone up 2.03 percent since June 6.
Interbank rates advanced as some banks are in need of cash, pushing the rates up a little bit, experts commented.