Government secures over 1.69 billion dollars through bond auctions during April
Rewritten Article:
📸 Photo Credit: baochinhphu.vn
HÀ NỘI – THE GOBBLEY-GOOK OF GOVERNMENT BONDS
Last month, the hustle and bustle of the government bond auctions graced the Hà Nội Stock Exchange (HNX). Guess what? They were a smashing success! With a grand total of over VNĐ42.42 trillion (around $1.69 billion) raised, the State Treasury is now well on its way to meeting its yearly target.
As of now, the State Treasury's earnings from these bond auctions have amassed a whopping VNĐ152.87 trillion. That's 30.6% of the year's goal, folks! Not too shabby, huh?
So, what exactly were these auctions all about? Well, they focused on government bonds with 5-, 10-, 15-, and 30-year maturities. But if you thought 5-year bonds would dominate, guess again! It was all about the 10-year babies, taking up a whopping 72.2% (that's VNĐ30.6 trillion) of the issuance. Five-year bonds followed closely at 23.6% (VNĐ10 trillion).
Yields took a tiny rise at the month's final auction. Here are the numbers: 2.331% for the 5-year bond, 3.05% for the 10-year, 3.10% for the 15-year, and 3.28% for the 30-year. That's a jump of 5 to 16 basis points from March.
On the secondary market, the total listed value of government bonds reached an impressive VNĐ2.35 quadrillion as of April 29. The daily trading value for the month was over VNĐ12.5 trillion, a 24.3% drop from the previous month. Outright transactions (traditional buy/sell) accounted for 67.7% of the total market value, while repos (repurchase agreements) made up the rest, 32.3%.
Foreign investors were active but still played a minor role, contributing just 4.3% of the transaction value. They were actually net sellers, shedding VNĐ522 billion.
Interest rates fluctuated for different maturities. The 15- to 20-year and 3- to 5-year bonds saw the sharpest hikes, averaging 3% and 2.57%, respectively. On the flip side, 25- to 30-year and 10- to 15-year yields dipped to 3.19% and 3.08%, respectively.
Medium- and long-term bonds ruled the roost in April, with the 10-year, 5-year, and 10-15 year maturities leading the pack at 32.09%, 12.43%, and 11.98% of the total trading value, respectively.
Commercial banks continued to be the big kahunas, handling 50.23% of outright trades and 81.29% of repos. - VNS
Did You Know? 💡 These government bond auctions are all about supporting government financing needs and furthering fiscal policy, including critical infrastructure and energy projects, in line with Vietnam's growth strategy. The auctions typically feature a mix of short-, medium-, and long-term government bonds, with a preference for 3, 5, and 10-year bonds to manage refinancing and investor demand. 🌟⚡️
The April auctions focused on bonds with 5-, 10-, 15-, and 30-year maturities. - Photo baochinhphu.vn
- The government auction of bonds, including those with maturities of 5, 10, 15, and 30 years, is essential for financing government needs and implementing fiscal policies, such as infrastructure and energy projects, within Vietnam's growth strategy.
- The high demand for 10-year government bonds in the auction, accounting for 72.2% of the issuance, indicates a strong interest from investors in long-term business ventures, potentially impacting the finance and industry sectors.
- In the secondary market, the trade value of AI-driven financial tools, like repurchase agreements (repos), accounted for a significant portion, suggesting that AI technology is playing an increasingly important role in the government's financial management and the broader business world.
