Government bond yields hit record low

15-Jan-2020 Intellasia | VNS | 6:02 AM Print This Post

Government bond yields hit a record low in December 2019, with the interest rates of Treasury bonds of all terms seeing decreases by between 0.03 and 0.37 percentage points compared to November.

The rate of treasury bonds of five-year term saw the largest drop, at 0.37 percentage points.

The State Treasury of Vietnam issued VND9.9 trillion worth of government bonds in December, 28, 2 per cent lower than the previous month.

In 2019, the total government bonds issued was VND197.8 trillion, up 19.3 per cent.

In the primary market, government bond interest rates continued to decline, with five-year term rates dropping by 37 percentage points to 2 per cent, 10-year and 30-year terms down respectively 3 and 10 percentage points to 3.48 per cent and 4.55 per cent.

In the secondary market, government bond rates hit a record low, at 1.55 per cent, 2.01 per cent and 3.42 per cent for one-year, five-year and 10-year terms, respectively.

According to Ban Viet Securities Company, government bond rates would continue to be under downward pressure in January in the context of abundant banking liquidity.

Government bond rates averaged 4.68 per cent in the January-November period, representing a decline of around 1.6 per cent compared to the beginning of the year.

As of November, the government bond market was equivalent to 25.6 per cent of the country’s gross domestic product.


Category: Finance, Vietnam

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