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Tuesday, May 21, 2024

G-bond coupon rates for all tenors slide further in March

By N.Tan

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HCMC – Given the downtrend in January and February, the coupon rates of government bonds (G-bonds) in March continued to drop by 40 to 76 basic points in all tenors against the last G-bond auction held in early March.

At the auction session in late March, the G-bond coupon rates for the five-year, seven-year, 10-year, 15-year, 20-year, and 30-year tenors were at 2.93%, 3.8%, 3.45%, 3.6%, 3.75% and 3.8%, respectively, according to the Hanoi Stock Exchange (HNX).

HNX held 19 auction sessions in March for G-bonds issued by the Vietnam State Treasury (VST), with a total value of winning bids reaching nearly VND35.45 trillion, equivalent to a bid-to-cover ratio of 69.50%.

VST has raised a little more than VND104.87 trillion from G-bond issues in the first three months of 2023, achieving 97.1% of the first-quarter target and 26.22% of the full-year plan.

VST re-issued G-bonds for five-year and seven-year tenors along with tenors of 10 years, 15 years, 20 years and 30 years.

Among those, the G-bonds with 10-year and 15-year tenors had the highest winning bids, with bid-to-cover ratios of 32.99% and 41.88%, respectively.

On the secondary market, G-bond transactions in February surged 10.46% month-on-month to VND123.149 trillion, with an average of over VND5.354 trillion per session. Outrights accounted for 68.94% of the total transaction value.

The total value of G-bond transactions reached VND291.43 trillion in the first three months of 2023, with an average value of VND4.94 trillion each session, up 40.5% compared to the fourth quarter of 2022.

The average Government bond yield increased the most in the 10-15 year and 25-30 year tenors, rising by 17.45% and 13.54%, respectively, compared to last month.

Bonds with 10-year, 15-year and 7-year terms were the most traded on the market, accounting for 23.96%, 18.38%, and 12.26% of the total trading value, respectively.

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