G-bond issuance surged due to re-investment demand

- VST issued VND16.0tn (USD630.8mn) of G-bonds in January, double the amount issued in December 2024. The surge in G-bond issuance could be attributed to the high number of G-bonds that expired during the month – around VND18.2tn (USD720.3mn) – the highest monthly amount of matured G-bonds since June 2021.

- The VST plans to issue VND111tn (USD4.4bn) of G-bonds in Q1 2025 and VND500tn (USD19.7bn) for full-year 2025, a surge of 51.3% vs the actual issuance amount last year. January’s issuance completes 14.4% of the Q1 2025 target and 3.2% of the full-year 2025 target.

- In the secondary market, the average daily trading value (ADTV) dropped 31.7% MoM to VND10.4tn (USD411.2mn) in January, after increasing 11.7% MoM in December. We believe the drop in ADTV could be due to tighter liquidity in the banking system before the Tet holiday.

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