Government bond auctions raise over 29 trillion VND in February

Illustrative Image (Photo: VNA)

Hanoi – The Hanoi Stock Exchange (HNX) reported that in February 2025, a total of 16 government bond auctions were conducted, successfully raising nearly 29.13 trillion VND (1.2 billion USD) for the State Treasury.

In the first two months of the year, government bond issuances through HNX auctions reached 45.11 trillion VND, fulfilling 41% of the first-quarter target and 9% of the annual plan for 2025.

In February, bonds were successfully issued in three maturities: 10 years, 15 years, and 30 years. The 10-year bonds accounted for the largest share, comprising 96% of the total issuance, equivalent to 27.96 trillion VND. The interest rates for government bonds at the end of February stood at 2.97% for the 10-year term, 3.00% for the 15-year term, and 3.28% for the 30-year term, reflecting an increase of 0.03-0.14 percentage points compared to the previous month.

On the secondary market, as of February 28, the total listed value of government bonds reached 2.25 quadrillion VND. The average daily trading volume in February was 13.34 trillion VND, marking a 28.14% increase from the previous month. Outright transactions accounted for 66.76% of total trading value, while repurchase agreements (Repos) made up 33.23%.

Regarding investor composition, commercial banks remained the dominant participants, representing 50.92% of outright transactions and 93.39% of Repos. Securities companies accounted for 49.08% of outright trades and 1.34% of Repos. Foreign investors contributed 1.71% of total market transactions, with net purchases of 583 billion VND.

In terms of yields, the most significant increases were observed in 7-year and 10-year government bonds, which reached approximately 2.66% and 3.06%, respectively. The sharpest declines were recorded in the 10-15 year and 6-month maturities, now standing at around 3.02% and 0.95%.

Trading activities were most concentrated on medium- and long-term bonds, particularly in the 10-year, 10-15 year, and 25-30 year maturities, which accounted for 21.70%, 15.65%, and 9.74% of total market transactions, respectively./.