G-bond issuance surges to the highest level in nearly a year

- In March, G-bonds issuance continued to increase for the fourth consecutive month to VND32.6tn (USD1.3bn), up 15.5% MoM. Meanwhile, G-bond supply by the Vietnam State Treasury jumped nearly 70% MoM (the highest G-bonds supply since March 2023 while G-bonds demand slightly declined).

- Despite increasing supply in March, G-bond issuance still missed the Q1 2024 target as the VST issued USD80.2tn (USD3.2bn), fulfilling 63.2% of its Q1 plan and 20.1% of the annual plan. Meanwhile, we estimate that VND25.7tn (USD1.0bn) of G-bonds expired in Q1 2024, leading to a net issuance of VND54.5tn (USD2.2bn), a drop of 38.6% from the net issuance amount seen in Q1 2023.

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