G-bond yields dropped to multi-month lows

- In March, the Vietnam State Treasury (VST) issued VND35.4tn (USD1.5bn; -3.1% MoM) of G-bonds. Ample system liquidity boosted bond demand as the bid / offered rate reached 3.5x. As of end-March, the VST had issued VND104.9tn (USD4.5bn) of G-bonds, which is 2.5x the amount issued in Q1 2022 and completed 97.1% of Q1 2023 plan and 26.2% of the FY 2023 plan.

- In the latest auctions of March, the winning yields of 10Y and 15Y bonds (accounting for 75% of March’s total issuance) both slumped by around 70 bps to 3.45% and 3.60%, respectively, which were their lowest levels since September 2022. 

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