Vietnam bond auction fails to meet sales target
Published March 3rd, 2008
Vietnam’s State Treasury fell short of a VND1 trillion ($62 million) target in debt sales Thursday, raising VND700 billion, the Hanoi stock market said in a statement Friday.
At the previous debt auction on Jan. 25, the State Treasury managed to sell only VND480 billion worth of three-year and five-year government bonds, less than half the target of VND1 trillion.
Vietnam’s money markets have been volatile in the past two months since the central bank took measures to tighten monetary conditions, including raising three main interest rates and boosting reserve requirements.
In the latest auction on Thursday, the State Treasury sold all VND700 billion of two-year bonds on offer at yield of 7.68 percent. Three bidders sought to buy the debt between 7.68-7.7 percent, the Hanoi market statement seen on Friday said.
The debt will be issued on March 3 for maturity on March 3, 2010. Proceeds are often used for construction projects.
At the same auction one bidder sought to buy 3-year government bonds worth VND300 billion at a yield of 8.05 percent, but the Finance Ministry was only prepared to accept yield of 8 percent, the statement said.
