State Bank net injected more than 40,000 billion VND in October

VTV.vn - Last October, the State Bank injected a net VND40.2 trillion to support liquidity and contribute to reducing pressure on short-term interest rates.

State Bank net injected 40.2 trillion VND in October

In October, government bond issuance continued to recover, increasing sharply by 63.4% compared to September 2025 (MoM), reaching VND27.7 trillion, marking the second consecutive month of strong growth.

In the primary market, government bond yields continued to increase across all tenors, with five-year and ten-year bond yields accounting for about 96% of total issuance volume in October — up 11 basis points (bps) and 21 basis points from September, respectively, to 3.14% and 3.8% per year.

The State Treasury announced a plan to issue VND145 trillion in government bonds in the fourth quarter of 2025, nearly three times higher than the issuance volume in the third quarter of 2025 and 20.8% higher than the plan for the third quarter of 2025. In the total issuance plan for the fourth quarter of 2025, 10-year and 15-year bonds account for the largest proportions, at 31% and 21%, respectively.

As of the end of October, the State Treasury had completed 19.1% of the issuance plan for the fourth quarter of 2025. In the first 10 months of 2025, the State Treasury issued a total of VND283.4 trillion of government bonds, equivalent to 56.7% of the annual target. During the same period, about VND35.6 trillion of government bonds matured, resulting in a net issuance of VND247.9 trillion, up 6.3% over the same period in 2024.

In the money market, the State Bank continued to lend through open market operations (OMO) to offset the amount of repos maturing in October.

Overnight interbank interest rates increased to an average of 4.8%, compared to 4.1% in September, due to two main reasons: (1) large repo maturity volume, about VND250 trillion; (2) increased credit demand at the end of the year.

To support liquidity, the State Bank has injected a total of VND290 trillion into the banking system through OMO, bringing the net liquidity injection to VND40.2 trillion.

The average interbank interest rate then decreased slightly in the last days of October, reaching 4.3%/year (-43 basis points MoM).

Analysts said that interbank interest rates may continue to be under increasing pressure in November due to: (1) credit growth is expected to accelerate at the end of the year; (2) about VND162 trillion of repos mature in the month. However, the State Bank is expected to maintain stable liquidity conditions in the market by continuing to inject capital through OMO, in order to reduce pressure on short-term capital mobilization in the banking system.

Source: https://vtv.vn/ngan-hang-nha-nuoc-bom-rong-hon-40000-ty-dong-thang-10-100251112101457299.htm