Vietnam treasury fails to sell any of vnd2tln government bonds on Oct 13

The State Treasury failed to sell any of VND2 trillion Government bonds in an auction of 3-year and 5-year bonds held on Oct 13, said Hanoi Stock Exchange on its website.

There were 3 bidders for the 3-year one for yields of around 12.4-13% p.a., while only 2 bidders registered to take part in the 5-year auction, seeking for yields as high as 12.4-12.65% p.a., the bourse said. Bidders registered to auction only VND1.1 trillion or 55% of total VND2 trillion bonds offered.

Bidders expected bond yields to be 0.3-0.5% higher than the previous auction on Oct 10, causing no government bonds to be sold.

This is not the unusual failure of the government bond auction as in the previous auction of VND 2 trillion worth of 3-year and 5-year bonds held on Oct 6, the bid-to-cover ratio was only 0.25% or VND50 billion of the offered government bonds, yielding 12.15% per annum.

Interbank interest rates have been skyrocketing these days, especially 1-month interest rates rose to 18.5% p.a., the local online newspaper Saigon Economic Times reported.

Source Sophie/ News Writer/ StoxPlus

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

Posted by VBN on Oct 14 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