Fixed Income July 2018 - Sovereign bond curve partially flattens after sell-off in shorter maturity debt
  • 2018-08-10T20:28:49
  • Fixed Income
Yields jumped across all tenors due to tightening liquidity. Yields of shorter terms saw sharper increases with 1Y, 2Y, 3Y bond yields approaching levels seen early this year of 3.5% (+116 bps MoM), 3.61% (+93 bps MoM) and 4.06% (+41 bps MoM), respectively. Total trading turnover in the secondary market dropped 11.2% MoM to VND155tn (USD7.8bn) as bond prices continued to fall steeply. Net foreign outflows of VND2.64tn (USD115mn) in July were the sharpest in more than one and a half years.