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G-bonds see higher interest rates

Government bonds fetched higher interest rates for all maturity terms at the latest auction conducted by the Hà Nội Stock Exchange (HNX) on June 20.

A total of VNĐ4.3 trillion (US$187.9 million) worth of bonds were sold at the transaction out of the VNĐ6 trillion offered, including VNĐ100 billion in five-year bonds with an annual interest rate of 3.1 per cent, representing a 0.1 per cent increase from the interest rate fetched at the previous auction on May 23.

VNĐ2.4 trillion in 10-year bonds was raised at an interest rate of 4.35 per cent per annum, up 0.03 percentage from the previous auction on June 13.

Meanwhile, VNĐ1.8 trillion worth of 15-year bonds were sold at an interest rate of 4.68 per cent per annum, up 0.03 percentage from June 13.

The auction saw no sales of 7-year, 20-year, and 30-year G-bonds.

The State Treasury has raised VNĐ70.181 trillion ($3 billion USD) from auctions of government bonds at the HNX, the northern bourse said.

Interest rates on government bonds have been on the rise lately, after a long period of decline throughout 2017 and the first four months of 2018. The National Financial Supervisory Commission has predicted that the G-bond market in 2018 will see modest changes against last year thanks to economic growth of more than 6.7 per cent and inflation of below 4 per cent.

The value of G-bonds issued in 2018 is estimated at some VNĐ180 trillion ($7.92 billion), with the focus being on long-term maturity and keeping interest rates low. – VNS