Government bond issuance interest rates tend to increase in February

According to information published on the Hanoi Stock Exchange (HNX), in February 2024, HNX organized 12 auctions of Government bonds (G-bonds) issued by the State Treasury (KBNN), with a total winning value of VND 28,170 billion, equivalent to a winning rate of 95.49%.

Accordingly, the interest rate issued in February tends to increase gradually with an increase of about 0.03%/year compared to the end of January 2024 for most terms. At the last session in February, the interest rate for mobilizing Government bonds through bidding at HNX for terms of 5 years, 10 years, 15 years, 20 years was 1.42%, 2.31%, 2.51% and 2.65%/year, respectively.

Government bond issuance interest rates tend to increase in February.

The total value of government bond transactions in the secondary market in February 2024 decreased compared to January 2024 due to the 2024 Lunar New Year trading holiday, although the average trading value per session increased slightly, reaching VND 9,363 billion/session, up 2.91% compared to January 2024.

Of which, the transaction value by the normal method (outright) accounts for 58.58%, the rest is the repurchase transaction value (repos). The proportion of transaction value of foreign investors in February 2024 accounts for 1.86% of the total transaction value of the whole market.

The average trading yield of Government bonds issued by the State Treasury tended to decrease in February 2024, specifically decreasing in the 6-month, 30-year and 20-year terms, down 48.23%; 10.78% and 5.22% respectively compared to the same period last month and increasing in the 1-year term, up 103.51% respectively compared to the same period last month.

The most traded tenors during the month were 10-year, 10-15-year, and 7-year tenors, with their respective proportions to the total market trading value of 16.92%; 15.15%, and 12.66% .

Source: https://www.nguoiduatin.vn/lai-suat-phat-hanh-trai-phieu-chinh-phu-co-xu-huong-tang-trong-thang-2-a653257.html