VDB sells 100% of offered government-backed bonds on Feb 8

Vietnam Development Bank sold VND4 trillion worth of 3- and 5-year government-guaranteed bonds, or 100% of the offered value, at the yield of 12.2%-12.25% p.a. in an auction held on Feb 8, said the Hanoi Stock Exchange (HNX).

The bid-to-cover ratio was 1.6, including four bidders registered for VND2700 trillion 3-year bonds, seeking for yields of 12.15-14% per annum, and five bids for VND3.638 trillion worth of 5-year bonds with expected yields ranging from 12.22-12.45% p.a., the bourse said. Fixing for 3-year government bonds was 12.2%, up 0.01% from the latest auction while that for 5-year tenor remained unchanged.

Liquidity of the local banking system was much improved after the Tet holiday, said Nguyen Thi Hong, Head of the Monetary Policy Department in a monthly government briefing last Saturday (Feb 4).

Banks showed more interest in bonds on speculation that interest rates would decline, said Cao Tan Phat, an analyst at ACB Securities Inc., adding that banks presently had quite ample liquidity.

Yield on the government’s 5-year bonds dipped 0.05% to 12.36%, the lowest level since October 14, 2011, according to daily fixings compiled by Bloomberg.

The average interbank interest rate for 3-month term nosedived to 9.5% per annum on February 4, 2012, the lowest level since October 8, 2010, the central bank’s data showed. Interest rates for overnight and 1-month terms also saw downward trend on the same day, declining by 0.03% and 2.33% against Feb 2 to stay at 13.52% per annum and 11.95% p.a., respectively. Meanwhile, the average interest rate for 1-week, 2-week and 6-month loans edged up from 0.18% to 1.1%, compared to those on Feb 2. The average 12-month interbank interest rate remained unchanged at 20.64% p.a.

Source Sophie/ StoxPlus

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

Posted by VBN on Feb 9 2012. 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