The coming derivative product for government bonds (known as g-bonds) is expected to help financial institutions hedge risks, but experts have raised concerns about the trading mechanism.
About 90 per cent of social insurance funds are currently invested in government bonds (G-bonds), Dao Viet Anh, deputy general director of Viet Nam Social Security (VSS) said at a seminar last week.
A total of VND104.2 trillion (US$4.46 billion) has been raised this year as of August 22 by the State Treasury of Vietnam via auctions of Government bonds at the Hanoi Stock Exchange.
Market value of Government bonds (G-bonds) hit VND1 quadrillion (US$44 billion) at the end of February, equivalent to 20 per cent of Viet Nam’s gross domestic product (GDP) in 2017.
The Ha Noi Stock Exchange (HNX) raised VND433 billion (US$19 million) by auctioning Government bonds (G-bonds) issued by the State Treasury on Wednesday.
Trading of long-term Government bonds (G-bonds) in the first five months of 2017 has seen improvements compared to 2016 due to changing tastes of institutional investors.
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.