The capital market newsletter for the week from March 4th to 8th 2019 recently released by Saigon Securities Incorporation (SSI) Retail Research showed that the State Treasury offered nine trillion dong on four tenors of five, 10, 15 and 20 years.
Except for the five-year tenor which recorded high registration rate and 100 percent winning rate (offer volume was one trillion dong), the registration and winning rates of other tenors all declined compared to the previous weeks.
The offer volume of two tenors of 10 and 15 years was the highest but only 67 percent of that was issued. From the beginning of the year until now, the issuance value of these two tenors were respectively 27.4 and 24.4 trillion dong, completing respectively 91.3 percent and 93.8 percent of the issuance plan in the first quarter of 2019.
The winning bond yields for all tenors were at the lowest registered yields. Compared to the latest winning session, the 10-year and 20-year yields remained the same, while five-year and 15-year yields inched up by seven and two basis points, respectively.
On the secondary market, the yields increased by one to six points on all tenors. Specifically, the current yields of one-year, three-year, five-year, 10-year and 15-year bonds are respectively 2.89 percent, 3.38 percent, 3.77 percent, 4.73 percent and 5.06 percent, higher than the winning yields on the primary market by three to seven basis points.
The market liquidity declined with total trading value of 42 trillion dong, down by 26 percent over the previous week. Foreign investors continued to net purchase 539 billion dong, with 936 billion dong net purchase on tenors from two to five years, 151 billion dong net purchase on 10-year tenor, 53 billion dong net purchase on tenors of five to seven years, and 602 billion dong of net selling on tenors of 15 and 30 years.
According to SSI Retail Research, the strong selling on the long tenors and strong buying on shorter tenors will help reduce the interest rate risks when the bond yields tend to reverse.
