Treasury offloads bonds for $336.3m

Monday, Apr 25, 2016 08:21

The three-year bonds, the most attractive item at the auction, were all offloaded. — File Photo

HA NOI (Biz Hub) — The State Treasury sold G-bonds worth nearly VND7.5 trillion (US$336.3 million), or 73.2 per cent of the bonds offered on the primary market, between April 11 and 15.

In the previous week, the winning rate of bonds offered on the primary market was 86.3 per cent, the bond auction's organiser, the Ha Noi Stock Exchange (HNX), said.

The deals included three-year bonds worth VND3.9 trillion, five-year bonds amounting to VND2 trillion, VND303 billion-worth ten-year bonds and 15-year bonds-worth VNĐ1.237 trillion.

The three-year bonds, the most attractive item at the auction, were all offloaded. Ninety five per cent of the 15-year bonds were also sold out, while the quantity of the five-year bonds and ten-year bonds sold was 50 per cent and 30 per cent, respectively.

The annual coupon rate for ten-year bonds fell slightly by one basis point to 6.94 per cent, while yields for bonds of three years, five years and 15 years were unchanged at 5.55 per cent, 6.40 per cent and 7.65 per cent, respectively.

In the primary market, as of April 15, the Government issued VND100.8 trillion-worth G-bonds and Government guaranteed bonds, including bonds worth more than VND87 trillion issued by the State Treasury, VND13 trillion-worth bonds issued by the Việt Nam Development Bank and bonds worth VND600 billion issued by the Bank for Social Policies.

Meanwhile, the transaction liquidity on the secondary market improved, with an increase in transaction value of 27.5 per cent compared to last week's figure, to reach VND22.4 trillion. Each day, average trading reached VND4.5 trillion. Outright transactions accounted for 56 per cent, mainly on the three-year bonds, while the repo transactions accounted for 44 per cent. Foreign investors sold bonds worth VND31.4 billion in the week.

On April 20, the treasury offloaded another VND9.8 trillion-worth of bonds, including three-year bonds-worth VND3.9 trillion, VND5.2 trillion-worth five-year bonds, VND691 billion-worth 15-year bonds and VND7 billion-worth 20-year bonds.— VNS

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