Latest G-bond auction raises US$85.6 million

According to the HNX, the auction offered a total of VND3.5 trillion (US$150 million) worth of G-bonds with different maturities.

Four tenures were available, including five-year, 10-year and 15-year bonds valued at VND1 trillion (US$42.8 million) each, and 30-year bonds worth VND500 billion (US$21.4 million).

The auction of five-year bonds drew the interest of 16 investors and mobilised VND450 billion (US$19.27 million) at the average yield rate of 4.2% per year, up 0.1% from that of the previous auction on October 17.

The auction of 10-year bonds attracted nine bidders and sold VND850 billion (US$36.4 million) worth of bonds at the annual interest rate of 4.9%, 0.05% higher than that of the October 17 session.

Five investors made a bid at the auction of 15-year bonds which raised VND700 billion (US$30 million) at the average interest rate of 5.2%, down 0.2% from that of the previous session.

There was no successful bid for 30-year bonds.

So far this year, the State Treasury of Vietnam has collected nearly VND126.43 trillion (US$5.4 billion) from G-bond auction at the HNX, accounting for over 70.2% of the yearly target.

According to the Ministry of Finance, Vietnam expects to issue VND180 trillion (US$7.7 billion) worth of G-bonds this year, with the focus being on long-term maturity and keeping the interest rate at low levels.

G-bonds valuing at VND159.9 trillion (US$7.03 billion) and having an average maturity of 13.52 years, up 4.81 years against 2016, were issued last year. The bonds had an average annual interest rate of some 6.07%, down 0.2 percentage points against 2016.