Winning G-bond interest rates drop sharply

17-Jan-2020 Intellasia | BizLIVE | 7:02 AM Print This Post

In the beginning of 2020, the market witnessed the continuous decline of the dong interbank interest rates as well as the simultaneous fall of the government bonds’ winning interest rates.

In the last week, the State Treasury successfully mobilised all the three trillion dong government bonds offered, including 500 billion dong for each term of five years and 20 years, and one trillion dong for each term of 10 years and 15 years.

The winning interest rates plummeted compared to the previous session, reaching 1.8 percent per annum on five-year term (down by 20 basis points), 3.1 percent per annum on 10-year term (down by 38 basis points), 3.2 percent per annum on 15-year term (down by 45 basis points), and 3.63 percent per annum on 20-year term (down by 39 basis points).

The strong downward trend of the government bond winning rates have been clearly seen in 2020 and early 2020. For example, the winning rate of five-year bonds in the last week was only 1.8 percent per annum, a record low level for many years. The average interest rate of this term once reached more than 12 percent per annum in 2011, then gradually fell to six percent per annum in 2015 and 2016, particularly dropped in 2018 and 2019 to only three percent per annum.


Category: Finance, Vietnam

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