All the bonds were issued through auctions with maturities ranging from 5-15 years. Notably, longer tenors of 20-30 years attracted zero investor interest. The average issuance tenor landed at 10.02 years, helping keep the overall government bond portfolio’s average maturity at 8.44 years and easing near-term repayment pressure on the central budget.

Yields were managed in line with broader market movements and the State Bank of Vietnam’s monetary policy stance. By the end of March, the average government bond yield stood at 4.06%, up 0.8 percentage points from 2025.

According to the VST, a turbulent global backdrop weighed on the market. Escalating military tensions in the Middle East rippled into Vietnam’s economy and financial system, triggering sharp swings in interbank rates. Overnight rates spiked as high as 17% at times, the highest level in a decade while the quarterly average interbank rate climbed to 5.84%, 1.27 percentage points higher than a year earlier.

Liquidity shortages in the banking system remain unresolved, even as credit growth is projected to run strong at around 15% this year to support economic expansion. These pressures have clearly dampened investor appetite in the bond market, impacting the Government’s fundraising results.

State Treasury to auction VND400 trillion worth of government bonds this year

The State Treasury has announced that it plans to raise VND400 trillion (over US$16.25 billion) worth of government bonds via auctions on the Hanoi Stock Exchange (HNX) this year.