Investors resume to buy G-bonds, the yield go down in the local market.— Photo nganhang.vn

HA NOI(Biz Hub)— The Vietnamese bonds market improved as the two-year yield went down to a five-week low and foreign investors returned to buy, said Trinh Quang Dung from Vietcombank Securities Company(VCBS).

According to VCBS' data , the two-year yield dropped to 7.05 per cent on Monday in Ha Noi, the lowest level since July 3. The rate also fell 47.5 basis points last week.

Bond researcher Dung told Biz Hub that investors began buying bonds, waiting for the G-bond market to rally after stabilisation of the money market. Dung said both the interest and yield were lower and bond auctions were achieving better results than they did a month ago.

The State Treasury sold VND1 trillion ($47 million) of two-year notes to yield 7 per cent last week, compared with 7.28 percent at the previous sale.

Meanwhile HCM City will issue VND1.5 trillion ($71.4 million) worth of municipal bonds on August 21 and another VND1.5 trillion bonds will be issued in the last quarter.

Accordingly, the city aims to issue bonds of 3-, 5- and 10-year maturities with a par value of VND100,000($4.50). The bond issue is expected to fund socio-economic development projects of the southern city.—VNS