Plentiful liquidity of the banking system has allowed the Government to issue bonds with low coupon rates and high winning ratio, MB Securities company reported.

According to the report, State Treasury offered VND48 trillion (US$2.11 billion) worth of bonds in September and successfully mobilised VND38.458 trillion ($1.69 billion) from the primary market, accounting for 80 per cent of the offered bonds. Winning volume increased 6.16 per cent compared to August.

Winning yields remained almost unchanged since late August with yields for 5-, 10- and 15-year bonds being 0.82, 2.12 and 2.35 per cent respectively.

Government bond trading on the secondary market was also picking up with average trading volume reaching VND12.1 trillion ($532 million) in September, up 47 per cent month-by-month. Average outright trading volume was worth VND8.7 trillion ($383 million) per day, up 45 per cent against August.

At the end of September, the yield for 10-year bonds stood at 2.17 per cent, 6 basis points higher than the previous month. Likewise, 2-year bonds also saw an increase in yield to 0.76 per cent, up 7 basis points.

Foreign investors net sold VND691 billion ($30.34 million) worth of government bonds in September, and net bought a total of VND10.471 trillion ($460 million) so far in 2021.

Government bonds issuance is expected to rise in the future to finance growing public investments. — VNS