MONEY MARKET

• OPEN MARKET OPERATIONS (OMO)

The SBV net injected VND 2,672 billion through the open market. Through selling outright, the SBV sold VND 55,080 billion worth of T-bills (14-day term, 4.36% average interest rate), while VND 30,200 billion previously issued expired. Simultaneously, the SBV bought VND 27,551.6 billion through reverse repo (7-day term, 4.5% interest rate).

• INTERBANK INTEREST RATES

The overnight interbank rates decreased by 0.51% to 2.84%, while the 1-week and 2-week rates increased by 0.19% and 0.25%, respectively, up to 4.26% and 4.6%. The overnight interbank rate has fallen to 1-month low. However, regulatory activities of the SBV on the open market along with liquidity demand at the end of the quarter facilitate our opinion that short-term interbank rates may witness an upturn, narrowing the gap between interest rates in Vietnam and the US, supporting the exchange rate.

FOREX MARKET

The central rate increased by VND 4 from VND 24,256/USD to VND 24,260/USD. The exchange rate at commercial banks decreased by VND 1, from VND 25,456/USD to VND 25,455/USD. Thus, the VND is currently depreciating by 4.8% YTD compared to the USD.

BOND MARKET

• PRIMARY MARKET

The SBV called for 5Y, 10Y, 15Y, and 30Y G-bonds. The respective offering value was VND 1,000, VND 8,000, VND 1,500 and VND 500 billion, with respective winning rates of 0%; 100%; 100%; 10%.

• SECONDARY MARKET

Last week, the total Outright trading value was VND 82,622 billion, up by 82.04% compared to last week. Repo trading value reached VND 23,420 billion, up by 17.8% compared to last week.