500 billion VND of 1-month term bonds bought back
On March 5, 2025, the State Treasury announced the results of the repurchase of government bonds with a term. Although the total registered value from commercial banks is up to VND 4,150 billion, only VND 500 billion of 1-month term bonds are approved, with an interest rate of 3.60%/year.
Meanwhile, the 14-day and 21-day terms did not have successful transactions, even though the State Treasury issued VND1,000 billion and VND300 billion for these two terms. Commercial banks have registered large volumes, respectively VND 2,550 billion and VND 600 billion, but no transactions have been approved.
10-year term accounts for6% of primary issuance volume
According to statistics from the Hanoi Stock Exchange (HNX), in February 2025, HNX organized 16 auctions of government bonds issued by the State Treasury, mobilizing VND 29,129 billion. In the first 2 months of the year, the State Treasury mobilized VND45,111 billion through bidding, reaching 41% of the Q1/2025 plan and 9% of the annual plan.
The bonds successfully issued in February have 3 terms of 10, 15 and 30 years, mainly a 10-year term with a proportion of 96%, equivalent to VND 27,963 billion. The interest rate for government bond mobilization at the end of February for 10-year, 15-year and 30-year terms was 2.97%, 3.00% and 3.28%/year respectively, up 0.03% - 0.14%/year compared to the previous month.
Secondary transactions increase sharply
In the secondary market, the listed value of government bonds as of February 28, 2025 reached VND 2,255,932 billion. The average trading value of the February session reached VND13,348 billion/session, up 28.14% over the previous month. Of which, Outright transactions accounted for 66.76%, Repos transactions accounted for 33.23% of the total market value.
In terms of investor structure, the commercial banking sector still accounts for a large trading market share with 50.92% of Outright trading value and 93.39% Repos, while the securities company sector accounts for 49.08% of Outright trading and 1.34% of Repos trading. Foreign investors account for 1.71% of the total trading value and net bought VND 583 billion.
The average trading yield of government bonds issued by the State Treasury recorded the strongest increase for 7-year and 10-year terms, reaching 2.66 20% and 3.0647% respectively; while the 10-15 year and 6-month terms decreased the most, reaching 3.02% and 0.955% respectively. Regarding trading terms, medium and long terms including 10 years, 10-15 years and 25-30 years account for the highest proportion, respectively, 21.70%, 15.65% and 9.74% of the total trading value in the whole market.
