Mobilizing over 127,000 billion VND through Government bond bidding

In the first 5 months of the year, the State Treasury mobilized VND 127,031 billion, reaching 31.76% of the issuance plan for 2024 and 39% of the plan for the second quarter of 2024.

In May, the State Treasury called for bids at terms of 5 years, 7 years, 10 years, 15 years, 20 years and 30 years, but the winning bonds were mainly concentrated at two terms of 5 years and 10 years, with proportions of 41.6% and 36%, respectively.

Winning interest rates continued to increase, with an increase of 0.03%/year to 0.14%/year at the end of the month compared to the beginning of the month. Specifically, the interest rates issued at successful bidding sessions at the end of May for the 5-year, 10-year, 15-year, 20-year and 30-year terms were 1.8%, 2.66%, 2.83%, 2.86% and 3.1%, respectively.

In the secondary market, the listed value of government bonds as of May 31, 2024 reached VND 2,052,012 billion, up 0.57% over the previous month.

The total transaction value of Government bonds in May reached VND 228,031 billion, an increase of 30.63% compared to the previous month, with an average transaction value of VND 10,365 billion/session; of which, the value of regular buying and selling transactions (Outright transactions) accounted for 62.37%, the value of Repos transactions (determining the repurchase price) accounted for 37.63% of the total transaction value of the whole market.

The proportion of foreign investors' transaction value in May accounted for 2.07% of the total transaction value of the whole market, with net purchase value reaching 630 billion VND.

In May 2024, the average trading yield of debt instruments issued by the State Treasury increased the most in the 3-month, 10-year and 10-15-year terms, increasing by 44.77%; 10.25% and 8.43% respectively compared to the same period last month and currently reaching an average yield of about 2.8214%; 2.8648% and 3.0664% respectively.

The average trading yield decreased the most in the 1-year and 5-7-year terms with an increase of 10.36% and 6.28% respectively compared to the same period last month and is currently reaching an average yield of about 1.3202% and 2.2092% respectively.

Thereby, it can be seen that the trend of Government debt instrument trading yields in general is increasing.

In terms of remaining maturities of debt instruments, medium and long-term maturities are the most traded maturities in the entire market, namely 10-15 year, 5-7 year and 10 year maturities with proportions to the total transaction value of the entire market of 23.9%; 18.11% and 12.10% respectively.

Regarding the trading subjects in the Government bond market, the commercial banking sector continues to hold a high market share, with the proportion of Outright and Repos transaction value compared to the whole market being 57.28% and 94.68%, respectively.