Vietnam government bond issuance surges nearly 70% in June

The Hanoi Stock Exchange (HNX) held 16 government bond auctions in June, raising nearly VND30.5 trillion ($1.2 billion), up 68.8% from May.

Cumulatively, the State Treasury mobilized VND201.39 trillion ($7.72 billion) with the issuances in the first half of 2025, completing 40% of the year's plan.

Bonds were issued in 5, 10, 15 and 30-year maturities, with 10-year and 5-year bonds making up the bulk of the volume at 68% or VND 20.64 trillion and 27% or VND 8.3 trillion, respectively.

At the final auction in June, winning yields increased slightly across all tenors compared to end-May, standing at 2.59% (5-year), 3.18% (10-year), 3.27% (15-year), and 3.40% (30-year).

On the secondary market, the listed value of government bonds reached over VND2.39 quadrillion ($91.61 billion) as of June 30. Average daily trading value rose 20.28% month-on-month to VND16.74 trillion.

Outright transactions accounted for nearly 74% of the total market value, while repos made up the remaining 26%.

Foreign investors represented 3.68% of market activity, recording a net sell of VND13.4 billion ($513,680). For the first half of 2025, average daily trading reached VND14.04 trillion ($538.2 million), up 19.22% year-on-year.

The sharpest yield increases in June were seen in the 7-year (2.82%), 15-year (3.16%), and 5-year (2.52%) tenors, while the 3-year, 25-year, and 25–30-year maturities saw the steepest declines, averaging 2.02%, 3.40%, and 3.42%, respectively.

Mid and long-term bonds continued to dominate trading, with 10-year bonds making up 28.15%, 10-15-year bonds 14.17%, and 5-year bonds 12.55% of the total market value. Commercial banks remained the main players, accounting for 55.08% of outright trades and 93.24% of repos.