Government bond liquidity increases sharply in February

The State Treasury has just announced results of the repurchase transactions of government bond. Although the total registered value from commercial banks reached VND4.150 trillion, only VND500 billion of one-month bonds were approved, with an interest rate of 3.60%/year.

Meanwhile, there were no successful transactions for the 14-day and 21-day terms, although the State Treasury offered VND1 trillion and VND300 billion for these two terms. Commercial banks have registered large volumes, with VND2.550 trillion and VND600 billion respectively, but no transactions have been approved.

Government bonds successfully raised over VND29 trillion through auctions

According to statistics from the Hanoi Stock Exchange, in February 2025, it organized 16 government bond auctions issued by the State Treasury, and successfully mobilized VND29.129 trillion.

In the first two months of 2025, the State Treasury mobilized VND45.111 billion through government bond auctions, reaching 41% of the first quarter’s plan and 9% of the years’ plan.

Among the bonds that were successfully issued in February, the maturities raised included 10 years, 15 years and 30 years, with the 10-year maturity dominating, accounting for 96% of the total issuance value, equivalent to VND27.963 trillion. The interest rates of the bond issuance in late February saw an increase of 0.03% to 0.14% compared to the previous month, with the 10-year term rate reaching 2.97%/year, the 15-year term at 3.00%/year and the 30-year term at 3.28%/year.

On the secondary market, as of February 28, 2025, the total listed value of Government bonds reached VND2.255.932 quadrillion.

Market liquidity improved significantly with the average transaction value per session in the month reached VND13.348 trillion, up by 28.14% compared to the previous month. Of those, outright transactions accounted for a large proportion, 66.76% of the total transaction value of the market, while repo transactions accounted for 33.23%.

Regarding the investor structure, commercial banks still held a large market share, accounting for 50.92% of the regular trading value and 93.39% of the repo transaction value across the entire market.

The remaining share belonged to securities company with 49.08% of regular transactions and 1.34% of repo transactions in the market.

Foreign investors’ transactions remain modest, making up 1.71% of the total market transaction value, with a net purchase value of VND583 billion.

The average transaction yield of government bonds issued by the State Treasury saw a clear fluctuation, with the strongest increases in the 7-year and 10-year maturities, reaching 2.6620% and 3.0647%, respectively. In contrast, yields decreased significantly in the 10-year to 15-year and 6-month maturities, now standing at 3.02% and 0.955%, respectively.

In terms of transaction maturities, medium- and long-term bonds continued to dominate the market. Specifically, the 10-year term had the largest transaction proportion, accounting for 21.70% of the total market transaction value, followed by the 10-year to 15-year term with 15.65%, and the 25-year to 30-year term with 9.74%.