The State Treasury of Vietnam raised over VND39.2 trillion (US$1.7 billion) through Government bonds (G-bonds) auctions at the Hanoi Stock Exchange (HNX) in the first quarter of this year.

Successful bidders for G-bonds from 5 to 30-year term would enjoy higher interest rates by 0.04 – 0.13 percentage points per annum. Photo: Kinhtedothi

In the first quarter, the HNX organized a total of 40 government bonds auctions, including 21 in March alone for VND12.19 trillion (US$530.38 million) per session, up 246% month-on-month.

Successful bidders for G-bonds from 5 to 30-year term would enjoy higher interest rates by 0.04 – 0.13 percentage points per annum.

On the secondary market, the total volume of G-bonds sold by the outright method reached over 1.5 billion worth VND167 trillion (US$7.26 billion). 

Trading volume through repurchase agreements (repos) was more than one 671 million bonds valued at VND72.5 trillion ($3.15 billion), decreasing 8.13% in value from February and accounting for 30.27% of total transaction value in the market.

In March, foreign investors bought more than VND5.4 trillion ($235 million) worth of G-bonds via outright and sold of VND3.7 trillion ($161 million). This resulted in foreign investors being net buyer of VND1.7 trillion ($74 million) during the month and VND5.9 trillion (US$256.7 million) in the first quarter.

As of March, the total value of G-bonds reached more than VND1,340 trillion ($58.3 billion), slightly down 0.7% against late 2020.

The average transaction amount in the G-bond market in the January-March period rose by 20.2% year-on-year to VND12.3 trillion ($535.16 million), of which repos transaction accounted for 33.57% of total transaction value.

Last year, Vietnam raised nearly VND324 trillion (US$14.04 billion) from G-bonds, up 8% above the year’s plan.