The State Bank of Vietnam (SBV) on May 2 continued to issue three trillion dong worth of treasury bills on open market operations (OMO). However, the yield of T-bills slipped to only 6 percent per annum (p.a.), according to the local newswire NDHMoney.
Reuters’ data showed that commercial banks have continuously bought T-bills for tenors of 28-days, 91-days and 182-days despite constantly decreasing yields.
For 28-day tenor, the yield of T-bills decreased from 11.5 percent p.a. on March 15 to 6 percent p.a. on May 2, down 5.5 percent.
Similarly, for 91-day tenor, the yield on May 2 dropped to 9.2 percent p.a., down 3.2 percent and the yield of 182-day tenor tumbled to 10.3 percent from previous 12.5 percent p.a.
From March 15 so far, the central bank has issued nearly 84 trillion dong worth of T-bills while the volume of T-bills falling due for 28-day tenor reached only nearly 13.5 trillion dong.
This means that the central bank posted a net withdrawal at about 70 trillion dong via T-bill channel.
The overnight interest rate on the interbank market on May 2 also continued to fall to only 3 percent p.a., one week at 4-4.5 percent p.a. and one month at 7-7.5 percent p.a.