In October, the State Treasury of Vietnam called for 18 auctions of government bonds with the total offering value of VND 32,750 billion, the winning rate was 49.3%. Monthly Bond Market Report (Oct 2021)

In October, the State Treasury of Vietnam called for 20 auctions of government bonds with a total value of VND 32,750 billion, the total winning value was VND 16,146 billion, the winning rate was 49.3%. The two tenors with the highest offering value were 10-year tenor and 15-year tenor (VND 12,000 billion and VND 8,000 billion respectively, and the winning rate was 74.8% (10-year tenor) and 31.6% (15-year tenor). Winning bond yields at all tenors decreased compared to the previous month.

During the month, the 5-year tenor was issued by multiple-price bidding method, but the winning rate was very low (only VND 250 billion winning/VND 4,000 billion bid value). Average winning interest rate for the month in all maturities decreased compared to last month. 

In Q4/2021, STV planned to issue VND 135,000 billion of government bonds, including tenors of 5 years (VND 15,000 billion), 7 years (VND 5,000 billion), 10 years (VND 37,000 billion) and 15 years (VND 50,000 billion), 20 years (13,000 billion VND) and 30 years (15,000 billion VND. The value of Outright and Repo transactions reached VND 175,232 billion and VND 67,241 billion.

The value of Outright and Repo transactions reached VND 155,932 billion (-11%MoM) and VND 63,519 billion (-5.5% MoM)

On the secondary market, the average daily Outright transaction value decreased to VND 7,425 billion per day (-15.2% MoM), and the average daily Repo transaction value also slid to VND 3,025 billion per day (- 10% MoM). Compared to the same period last year, October Outright volume decreased by 12.7% and Repo trading increased 4.4%. 

During the month, the 5-year, 10-year and 15-year tenors were traded the most. The range of trading yields increased by 27 and 5 bps at 5-year and 10-year tenors. 

In October 2021, foreign investors net sold a total of VND 109 billion, thus, accumulated from the beginning of 2021, foreign investors have net bought VND 10,655 billion.

Compared to the previous month, Government bond yield (according to VBMA outright trading room) increased slightly at almost all tenors

Government bond yields stretched slightly about 3-12 points in tenors from 1 year to 15 years compared to the previous month's average and remained the same in tenors of 20 and 30 years. Compared to last year's interest rate level, the interest rate for tenors from 5 years to 30 years is currently 26-39 bps lower, while the interest rate for tenors from 1-5 years is higher from 28-38 bps. In recent months, the yield curve has not changed much, however, compared to the same period last year, the slope tends to decrease slightly, (decreased long-term interest rates, increased short-term interest rates). In October/2021, 5-year and 7-year government bonds were traded the most with trading volume of VND 4,750 billion (accounting for 30%) and VND 5,000 billion (accounting for 31%). 

Government bond interest rates in Vietnam are relatively low in the region. The interest rate spread between Vietnam and the US from the beginning of October until now has tended to narrow  by 4-35 bps for the 1-year to 10-year tenors and stretch for the 30-year tenor.

In the first 10 months of 2021, there were a total of 723 domestic corporate bond issuances with a total value of VND 438 trillion, of which there were 705 issuances under private placement and 18 issuances under public offering, 4 bond issuances on international market with a total value of USD 1.425 billion

In the first ten months of 2021, there were 705 private placements with a total value of VND 422.45 trillion (accounting for 96% of total issuing value), 18 issuances under public offering with a value of VND 15.5 trillion (accounting for 4% of total issuing value), and 4 issuances of bonds on the international markets with a total value of USD 1.425 billion. 

In the first 10 months of the year, the group of real estate companies ranked first with a total issuing value of VND 163.9 trillion, account for 37.4% of total issuing value. In which, about 27.56% of bonds issued were unsecured or secured by common shares. Issuing interest rates ranged from 5.2- 13%/year. 

Commercial banks sector ranked second with a total issuing value of VND 149.1 trillion. In which, there were VND 34.1 trillion of Tier 2-capital raising bonds (accounting for 22.8%). 75% of bonds issued with short tenors of 2-4 years. 

Since the beginning of 2021, there were 3 issuances of bonds on the international market, including: Vingroup (USD 500 million), green bonds of BIM Real Estate Joint Stock Company (USD 200 million), convertible bonds of Novaland (USD 300 million) and VinPearl JSC (USD 425 million).