During August 2024, Hanoi Stock Exchange conducted 16 auctions of government bonds issued by the State Treasury, raising VND 45,283 billion, up 24% from July.
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The interest rates on government bond issuances in August showed a slight decrease compared to the end of July for the 10-year and 15-year maturities. Specifically, the 10-year bonds witnessed a 0.05% drop, while the 15-year bonds decreased by 0.06%. The successful auction yields for the 5-year, 10-year, 15-year, 20-year, and 30-year maturities at the end of August stood at 1.95%, 2.71%, 2.90%, 3.00%, and 3.10%, respectively.
In the secondary market, the total value of government bonds listed as of August 31, 2024, reached VND 2,145,604 billion, marking a 2.11% increase from the previous month. The total trading value of government bonds in August amounted to VND 242,956 billion, with an average trading value per session reaching VND 11,043 billion, representing a 3.34% decrease compared to July.
The most actively traded maturities in July were the 10-year, 10-15 year, and 5-7-year bonds, accounting for 19.81%, 16.78%, and 11.21%, respectively, of the total trading value in the market. In August, the average trading yield of government bonds issued by the State Treasury decreased the most for the 7-10-year and 10-year maturities, currently standing at approximately 2.613% and 2.675%, respectively. The maturities that witnessed the highest increase in trading yield were the 2-year and 3-5-year bonds, which now offer average yields of around 1.476% and 1.8%, respectively.
The Soaring Property Prices: Mortgage Lending Faces Challenges
The impetus for credit growth is heavily reliant on the real estate sector, particularly on housing loans. While real estate credit has increased in the first seven months, housing loans have lagged, despite banks offering attractive interest rates.
Why is the disbursement of the VND120 trillion package for social housing construction still slow?
The Ministry of Construction has reported to the Prime Minister on the progress of the proposal to develop and invest in the construction of at least one million social housing units during the period of 2021 to 2030.
The Interest Rates Will Stay Low
“Banks report a resurgence in credit demand since mid-August, prompting many to adjust their deposit rates for select tenors to attract funds and meet this demand. However, lending rates will remain low.”
The Penultimate Proposal: Unveiling the Ministry of Finance’s New Suggestions for Service Pricing in the Securities Sector
The Ministry of Finance is seeking feedback on the draft circular guiding service prices in the securities sector applied at the Vietnam Stock Exchange and its subsidiaries, and the Vietnam Securities Depository and Clearing Corporation.
