Recorded on the Government bond market last week (March 21-25), the State Treasury called for a total

of 6,000 billion VND of bonds.

Finally, the rates of registration and winning bids did not change much compared to the previous week,
at 2.1 times and 42% respectively (equivalent to VND 2,540 billion of winning bids). In which, 10-year
term attracted the most attention with 2 rates of 3.1 times and 75% respectively.

Notably, the yield on primary still maintained an upward trend in 10 and 15 year tenors. Specifically, last
week, the winning interest rate for 10-year tenor was at 2.2%/year (increasing by 0.05 percentage
points); 15-year term at 2.5%/year (increasing by 0.05 percentage points).

The pressure to increase primary government bond yields is increasingly evident - Photo 1

In the secondary market, bond yields increased in line with the movements of government bond yields
in regional and US markets.

Closing the week was as follows: 1 year (1.62%, up 0.15 percentage points); 3 years (1.72%; 0.07
percentage points); 5 years (1.72%, unchanged); 10 years (2.4%; up 0.07 percentage points); 15 years
(2.68%, up 0.03 percentage points); 20 years (2.93%; up 0.01 percentage points) and 30 years (3.08%; up
0.04 percentage points).

At the same time, the average daily trading value increased slightly by 13% to VND 13.6 trillion and the
yield curve shifted upwards towards a flatter direction.

Thus, it can be seen that the interest rate gap between the primary and secondary markets is widening.
Therefore, the pressure to increase government bond interest rates in the primary market is becoming
more and more obvious.

In fact, investors participating in the Government bond market recently are mainly Social Insurance,
while credit institutions are still cautious in the context of concerns about high inflation. On the other
hand, credit institutions also limit transactions because they are placing high expectations on a new
interest rate hike.

Experts say that currently, the State Treasury has not really faced any inflation pressure because the
disbursement rate of public investment is still relatively low. However, further away, yields in the
primary market will inched up as the pressure to mobilize capital from the State Treasury gradually
increases, especially from the implementation of the economic support package 2022-2023.

Back to what happened last week but in the money market. The State Bank injected VND 715 billion into
the banking system through a 14-day term purchase with an interest rate of 2.5%/year. On the contrary,
there are 1,019 billion dong of bills maturing.

Thus, last week, the operator net withdrew 304 billion dong and brought the total circulating volume on
the mortgage channel (OMO) down to about 1,440 billion dong.

Interbank interest rates continued to increase slightly and formed a new ground: overnight 2.28%/year;
1 week 2.44%/year. With this interest rate, the liquidity of the system gradually stabilized after the
liquidity pressure during the Lunar New Year and was only a partial shortage in a few small banks.