Vietnam fails to sell government bonds on Oct 6

Vietnam could only sell VND50 billion or 2.5% of the total VND2 trillion worth of bonds auctioned, hitting 1-month low record on Oct 6.

Government bond fixings for 3-year tenor stayed around 12.2-12.4% p.a. while those for 5-year tenor were 12.35% p.a., up 0.2bps from previous session. The State Treasury sold VND50 billion of 5-year bonds, but failed to sell any 3-year bonds offered.

Bidders registered to auction only VND500 billion or 25% of total offered bonds on October 7.

This is not the unusual failure of the government bond auction as Vietnam could only sell VND850 billion or 40% of VND2 trillion worth of bonds offered in the week ending Sept 30.

Interbank interest rates have been staying high these days at 12.5%-13.5% on October 6, and especially 1-month interest rate rose to 16.5%-17.5% p.a.

The central bank has applied a series of new rates: raising refinance rate to 15% from previous 14%, effective from October 10, lifting overnight interest rates on electronic transactions to 16% from 14% and cutting interest rate on dollar compulsory deposits by credit institutions to 0.05% from 0.1%.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam bonds, Vietnam finance, Vietnam financial

Posted by VBN on Oct 7 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry