According to the updated monetary market report of SSI Securities Research and Advisory Department, the State Treasury of Vietnam called for 7,000 billion dong with terms of seven, fifteen and thirty years last week.
However, the registration rate over bid volume was 2.9times, lower than the level of four times in the previous two weeks, of which the maximum term was 30 years with the registered volume of 2,615 billion dong5.2 times more than the bid volume.
The lowest expected interest rate decreased by five basis points (bps), 30bps and 40bps corresponding to the fifteen, seven and thirty year term respectively compared to the latest auction. The winning rates for seven-year and fifteen-year tenors were 4.17 percent and 5.12 percent, which were 18bps and two bps lower than the latest winning rates. There was 395 billion dong of 30-year bonds issued at the interest rate of 5.8 percent after six months of not issuing.
In the secondary market, bond yields fell from one to six basis points at all terms, to levels close to the winning rates on primary. Specifically, the current rate of one-year, three-year, five-year, ten-year and fifty-year terms were 3.29 percent, 3.62 percent, 3.85 percent, 4.82 percent and 5.12 percent respectively.
The liquidity of secondary bond market declined so that total volume was reached 35.5 trillion dong, which was down 14 percent from the previous week. Foreign investors bought 1,101 billion dong, the largest net buying volume in more than one year. In which, there were net buying for twelve-month, two-year, three to five-year, ten-year, fifteen-year and net selling for 25-30-year. Furthermore, the terms of highest net buying were 12 months and 3-5 years, with amount of 482 billion and 450 billion dong respectively.
