SBV sharply reduces OMO bidding, continues to maintain 105-day term

On November 12, the State Bank continued to regulate liquidity through the OMO lending channel, but sharply reduced the scale of the offering compared to the previous session. The amount of offering on the OMO lending channel was only VND10,000 billion, much lower than the VND32,000 billion level of the November 11 session; at the same time, the State Bank continued to offer OMO bidding for a term of 105 days.

Specifically, in this session, the SBV bid 1,000 billion VND for 7-day terms and 3,000 billion VND for 14-day, 28-day and 105-day terms with a unified interest rate of 4.0%/year. As a result, there was no winning bid for the 7-day term; meanwhile, there was 2,234.78 billion VND won for the 14-day term, 2,826.75 billion VND for the 28-day term and 1,716.73 billion VND for the 105-day term. On the other hand, there was 7,633.66 billion VND of OMO maturing in the session on November 11. The SBV did not issue treasury bills during the day. In total, the operator withdrew a net 855.40 billion VND from the market, bringing the outstanding OMO debt in circulation down to 295,524.91 billion VND.

A notable point in the market 2 in the past few days is that since the session on November 11, the State Bank has offered long-term valuable papers of up to 105 days via the OMO channel. According to analysts, the addition of long-term terms shows the consistency in the monetary policy management of the State Bank to maintain stable system liquidity in the last months of the year, ensuring capital supply for the economy . The long-term bidding helps maintain the support cash flow for a longer time, thereby limiting sudden fluctuations in interest rates in the interbank market.

As of November 12, the average interest rate in the interbank market decreased slightly for overnight terms and increased by 0.10 - 0.20 percentage points for the remaining terms. Specifically, the overnight interest rate is 6.10%/year; 1 week is 6.30%/year; 2 weeks is 6.20%/year and 1 month is 6.20%/year.

Since the beginning of 2025, the SBV has continuously maintained VND liquidity support activities and has stepped up since the end of June. According to the SBV, the goal of operating the open market is to maintain the interbank interest rate at a reasonable level, creating favorable conditions for banks to have low-cost capital sources to continue reducing lending interest rates according to the policies of the Government and the Prime Minister .

Source: https://thoibaonganhang.vn/nhnn-giam-manh-chao-thau-tren-omo-tiep-tuc-duy-tri-ky-han-105-ngay-173511.html