Government bonds auctions raise nearly $1.8 billion in August

The total value of Government bond transactions in August amounted to nearly VNĐ243 trillion. — Photo baochinhphu.vn

HÀ NỘI — The Hà Nội Stock Exchange (HNX) held 16 auctions for Government bonds issued by the State Treasury last month, raising nearly VNĐ45.3 trillion (US$1.8 billion).

The value marked a 24 per cent increase month-on-month.

In August, the State Treasury conducted bidding for bonds across five maturity terms: five years, 10 years, 15 years, 20 years and 30 years.

The 10-year term retained the highest issuance share, comprising 63 per cent of the total winning volume.

The interest rates for Government bond mobilisation in August experienced a slight decline compared to late July for the 10-year and 15-year terms, with reductions of 0.05 per cent and 0.06 per cent, respectively.

At the close of August, the successful bid rates for the five-year, 10-year, 15-year, 20-year and 30-year terms stood at 1.95 per cent, 2.71 per cent, 2.9 per cent, 3 per cent and 3.1 per cent, respectively.

In the secondary market, the face value of Government bonds on August 31 reached over VNĐ2.1 quadrillion, up 2.11 per cent from the previous month.

The total value of Government bond transactions in August amounted to nearly VNĐ243 trillion, with an average session transaction value of VNĐ11 trillion, down by 3.34 per cent from July.

Outright trades, where a client agrees to buy or sell bonds listed on the stock market at the agreed price and date, constituted 61.7 per cent of the total market value, while repos transactions, where a client sells bonds and commits to repurchase at a higher price, comprised 38.3 per cent.

In August, the average trading yield of Government bonds issued by the State Treasury saw the most significant decrease in the seven-10 year and 10-year terms, currently averaging around 2.613 per cent and 2.675 per cent, respectively.

The largest increase was observed in the two-year term and the three-five year range, with average yields around 1.476 per cent and 1.8 per cent, respectively.

Foreign investors' transaction value share in August reached 2.12 per cent of the total market transaction value, a 0.42 per cent rise from July, with net purchases amounting to VNĐ388 billion.