According to the bond market newsletter for the week from February 25th to March 1st 2019 by Bao Viet Securities Company (BVSC), the State Treasury held three auctions for three tenors of seven years, 10 years and 30 years. The auction volume for those tenors reached respectively one trillion dong, 3.75 trillion dong and 500 billion dong.
As a result, the bidding volume for seven-year bonds was 2.35 times higher than the offer volume with winning rate of 10 percent at bond yield of 4.05 percentunchanged compared to the latest winning auction. The bidding volume of 10-year bonds was 2.99 times higher than the offer volume with winning rate of 100 percent at bond yield of 4.7 percent per annum unchanged compared to the latest winning auction. The bidding volume for 30-year bonds was equal to the offer volume, and the winning rate reached only 20 percent at bond yield of 5.79 percent, unchanged compared to the latest winning auction.
According to BVSC, in the past week, the 10-year bonds attracted the most interest with a winning rate of 100 percent. Currently, the largest bond issuance volume focus on two tenors of 10 years and 15 years, equivalent to 25.4 trillion and 21.4 trillion dong.
In the week from March 4th to March 8th, it is estimated that the State Treasury will offer 6.5 trillion dong of bonds on four tenors of five years, 10 years, 15 years and 30 years. According to BVSC’s prediction, in the context when the system liquidity is fairly positive, the auctions of government bonds this week will still attract high demand. The winning bond yield, accordingly, is likely to still move sideways.
