Government raises $3.65 billion from G-bonds in first months of 2019

In the latest G-bond auction held on Wednesday, the treasury raised more than VND786 billion. The bonds were offered for five, seven, 10 and 20 year terms.

The total value of bonds issued to date this year was equal to 27.5 per cent of the annual plan. Average maturity of the bonds was 12.47 years and the average interest rate was 4.92 percent per year.

According to the Ministry of Finance, the local bond market was relatively stable in the first months of the year, with interest rates in April staying steady compared with the previous month.

Five and seven year bonds had interest rates of 3.7 per cent and 4.05 per cent per year. The rates for 10-year, 15-year, 20-year and 30-year bonds were 4.72, 5.06, 5.7 and 5.85 per cent per year, respectively.

The State Treasury plans to issue five to 30 year G-bonds worth VND260 trillion via auctions in 2019 at an average maturity of 13 years.

According to Tran Van Dung, chairman of the State Securities Commission, there were 573 listed bonds with total value of VND1.12 quadrillion in 2018, up 10.4 per cent year-on-year. Of the figure, the value of G-bonds accounted for 98 per cent of the total while the remainder were corporate bonds.