G-bond issuance dropped to the lowest level in 32 months

- In December, G-bond issuance continued to drop 64.5% MoM to only VND7.4tn (USD289.9mn), marking the fourth consecutive month of declining and was the lowest figure since April 2022.

- The VST failed to achieve its Q4 and full-year issuance plans as it completed only 45.9% of the Q4 issuance plan and 82.6% of its annual plan. In 2024, the VST issued VND330.4tn (USD13.0bn) of G-bonds while we estimate VND71.2tn (USD2.8bn) of G-bonds expired, leading to a net issuance of VND259.2tn (USD10.2bn; +8.4% YoY).

- In the secondary market, the average daily trading value (ADTV) increased 11.7% MoM to VND15.2tn (USD599.9mn).

- In the primary market, winning yields of 5Y, 10Y, and 15Y increased 14 bps MoM, 9 bps MoM, and 7 bps MoM to 2.06%, 2.77%, and 3.22%, respectively. In the secondary market, yields of all tenors rallied, in which yields of 1Y, 5Y, and 15Y were quoted at 1.97% (+12 bps MoM), 2.29% (+33 bps MoM), and 3.12% (+16 bps MoM), respectively.

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