• On July 15, the Vietnam State Treasury (VST) announced an issuance plan of VND120tn (USD5.2bn) for Q3 2021. Of the total, the VST will continue to focus on 10Y bonds (33.3%) and 15Y bonds (41.7%). 
• G-bond issuance value fell 11.8% MoM to VND28.1tn (USD1.2bn) in July (accomplishing 23.4% the Q3 2021 issuance plan). In 7M 2021, the VST issued VND170tn (USD7.4bn; +16.3% YoY) of G-bonds, fulfilling 48.4% of the FY2021 issuance target. We estimate that VND140tn (USD6.1bn) of G-bonds expired in 7M 2021, resulting in a net issuance of VND29.2tn (USD1.2bn) compared to a net issuance of VND80tn (USD3.5bn) in the same period last year. 
• Total trading value in the secondary market retreated 24.7% MoM to VND204.1tn (USD8.9bn) in July. In 7M 2021, trading activity in the secondary market still increased 13.0% YoY with outright value jumping 22.6% YoY. Bond yields in the secondary market were broadly stable across almost all tenors. As of the end of July, 5Y, 10Y, and 15Y yields quoted at 1.10% (-2 bps MoM), 2.21% (-1 bps MoM) and 2.51% (-3 bps MoM), respectively. 
• After hitting a four-year high of net foreign inflows in June, foreign investors continued to net buy VND538bn (USD23mn) of G-bonds in the secondary market in July. In 7M 2021, foreign investors net bought VND10.1tn (USD440mn) vs only VND1.8tn (USD80mn) in the same period last year. 

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