G-bonds: longer term more expensive

12-Jul-2019 Intellasia | VnEconomy | 6:02 AM Print This Post

Hanoi Stock Exchange (HNX) has just announced the government bond mobilisation through auctioning in June 2019.

Specifically, in June, HNX held 13 auctions, mobilising a total of 11.132 trillion dong bonds, down by 6.7 percent compared to May 2019.

It is known that all mobilised bonds were issued by the State Treasury. The winning rate compared to the ask volume in June 2019 was 87.3 percent. In particular, five-year and seven-year bonds recorded no winning transaction. However, the bid volume in the month was still 4.9 times larger than the ask volume.

The winning interest rates were ranging from 4.64 to 4.67 percent per annum for 10-year bonds, five to 5.03 percent per annum for 15-year bonds, 5.58 5.63 percent per annum for 20-year bonds, 5.78 to 5.85 percent per annum for 30-year bonds.

Compared to the previous month, the winning interest rate of the State Treasury fell across the terms by 0.04-0.1 percent per annum.

The above statistics show that despite the decline in interest rates, the government bonds are still attractive on terms of 10 years or more.

Meanwhile, on the secondary government bond market, the total outright trading of government bonds in June 2019 reached more than 630 million bonds, equivalent to a trading value of more than 69.2 trillion dong, down by 19.6 percent in value compared to May 2019.

The total repos trading of government bonds reached more than 969 million bonds, equivalent to a trading value of more than 97.3 trillion dong, up by eight percent in value compared to May 2019.

Notably, the outright buying value of foreign investors was more than 3.6 trillion dong, and their outright selling value was more than 743 billion dong. The repos selling value of foreign investors was more than 39 billion dong.

 


Category: Finance, Vietnam

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