- 2024-02-19T00:00:00
- Fixed Income
Supply surged at the start of the year on aggressive 2024 issuance plan
- The Vietnam State Treasury (VST) offered VND39tn (VND1.6bn) in January (+85.7% MoM). Of the total, VND19.5tn (USD799.5mn) was issued (+34.8% MoM). Though the surge in supply put rising pressure on yields, high reinvestment demand kept yields at low levels in January (VND10.6tn or USD435.9mn of G-bonds expired in January - the highest monthly level since August 2023). At end-January, 10Y and 15Y yields in the primary market were at 2.28% (+8 bps MoM) and 2.48% (+8 bps MoM).
- The VST plans to issue VND127tn (USD5.2bn) of G-bonds in Q1 2024 and VND400tn (USD16.4bn) in full-year 2024, (+34.0% vs 2023’s issuance amount). January’s issuance completed 15.4% of the VST’s Q1 2024 plan and 4.9% of its 2024 target.
- In the secondary market, average daily trading value (ADTV) dropped 31.6% MoM to VND9.15tn (USD5375mn) after surging around 2.2x in December 2023. A decline in demand led to higher yields in long tenors. At end-January, 10Y and 15Y yields in the secondary market were at 2.28% (+ 5 bps) and 2.49% (+ 6 bps).
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