G-bonds see higher interest rates at latest transaction
A total of VND4.3 trillion (US$187.9 million) worth of bonds were sold at the transaction out of the VND6 trillion (US$262.2 million) worth of bonds offered, including VND100 billion (US$4.37 million) of five-year bonds with an annual interest rate of 3.1%, 0.1% higher than the interest rate fetched at the previous auction on May 23.
For the 10-year bonds, VND2.4 trillion (US$104.88 million) was raised at an interest rate of 4.35% per annum, up 0.03% from the previous auction on June 13.
Meanwhile, VND1.8 trillion (US$78.66 million) worth of 15-year bonds were sold at an interest rate of 4.68% per annum, up 0.03% from June 13.
No bonds of 7-year, 20-year and 30-year terms were sold at the auction.
According to the HNX, the State Treasury has raised VND70.181 trillion (US$3 billion) from auctions of Government bonds at the northern bourse.
The interest rates of Government bonds have been on the rise lately, after a long period of decline throughout 2017 and the first four months of 2018.
The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year thanks to the economic growth of more than 6.7% and inflation of below 4%.
The value of G-bonds issued in 2018 is estimated at some VND180 trillion (US$7.92 billion), with the focus being on long-term maturity and keeping the interest rate at low levels.
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