Vietnam government bond yield falls to 12.65%, demand rises

Vietnam Government bond yields fell to 12.7-12.65% p.a. in an auction of 3-year and 5-year bonds on June 9, according to Hanoi Stock Exchange (HNX) as demand rose and more dealers took part in the bidding session.

Primary investors sought for yields of 12.3-16% p.a. for 3-year bonds; and 12.5-13.49% p.a. for 5-year bonds, the bourse said, adding that corresponding fixings for the two terms were 12.7% p.a. and 12.65% p.a. compared to the yields of 13% p.a. in the previous auction .

A fall of 0.3-0.35% in bond yields fixings reflects better expectation of primary investors about the macroeconomic outlook.

There were 18 and 16 participants to the 3-year and 5-year auctions, respectively, resulting in a more active biding session compared to previous ones.

The State Treasury sold out VND3 trillion worth of Government bonds, in which it raised VND1.5 trillion each for 3-year and 5-year terms, the bourse said. This is the third consecutive auction it managed to sell above 95% of offered Government bonds. – Stoxplus.com

Tags: Vietnam Government bonds

Posted by VBN on Jun 11 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