Vietnam government raises $631 mln from bond auctions in Jan

Vietnam's Hanoi Stock Exchange (HNX) has announced that it held 17 auctions of government bonds issued by the State Treasury in January, successfully raising VND15.98 trillion ($631.37 million) across 5, 10, 15, 20, and 30-year maturities.

The auctions saw a strong preference for 10-year and 15-year bonds, representing 80.2% and 14.8% of the total, respectively. Specifically, 10-year bonds raised VND12.81 trillion ($506.12 million), while 15-year bonds garnered VND2.36 trillion ($93.24 million).

The yields were as follows: 2.1% for 5-year bonds, 2.83% for 10-year bonds, 2.98% for 15-year bonds, 3.05% for 20-year bonds, and 3.25% for 30-year bonds. These saw slight increases of 0.03-0.06% compared to the late December 2024.

As of January 31, the total listed value of government bonds on the secondary market reached over VND2.22 quadrillion ($87.71 billion). Outright transactions dominated trading activity, accounting for 73.2% of the total, while the repurchase market or repo market made up the remaining 26.8% .

Foreign investors also played a role, contributing 4.2% of the total trading value and making a net purchase of VND739 billion ($29.2 million) during the month.

Average transaction yields saw the highest hikes in the 5-7 year (2.6597%), 2-year (2.1252%), and 3-5 year (2.3661%). Conversely, yields declined the most for 1-year (1.1882%), 7-year (2.1203%), and 15-20 year (2.3155%) bonds.

Medium and long-term bonds were the most actively traded, with 10-year, 10-15 year, and 25-30 year bonds accounting for 23.89%, 21.78%, and 16.49% of the total market value, respectively.

Commercial banks continued to dominate the market, holding 49.23% of the total outright trading value and 92.04% of the repo market. Securities firms also made their mark, capturing 50.77% of outright trades and 0.84% of repo transactions.

Looking ahead, HNX announced that the State Treasury plans to issue VND500 trillion ($19.76 million) in government bonds in 2025, with VND111 trillion scheduled for the first quarter alone.