Truong Nam
Local commercial banks forecast short-term inter-bank rates to keep falling this week. Meanwhile, those with tenors of two weeks or more would remain stable.
Overnight interest rate was around 2.75% per annum on Monday, down by 0.3 basis point against the previous week. One-week rate was 3.15% per annum, a 0.1 basis-point reduction.
Meanwhile, two-week rate stood at 3.5% and one-month rate 4.2% per annum, which were almost unchanged compared to last week.
Last Friday, lending rates on the inter-bank market fell slightly against the previous day, with overnight and one-week rates staying at around 2.5-3% per annum. During August, lending rates for short-term tenors were above 5% per annum.
On the government bond market, secondary bond transaction rates also declined, hovering at 7.56%, 7.89% and 8.63% for two-year, three-year and five-year tenors respectively. In the previous week, the yields were 7.63%, 7.96% and 8.67% respectively.
Meanwhile, auctions of government bonds with tenors from five to 10 years have still seen low demand. Government bond yields lost 10 percentage points on the secondary market last week and are forecast to drop strongly in the coming time.
Recently, there have been concerns that the Ministry of Finance has plans to revise up 2014′s budget deficit target to 5.5% of gross domestic product (GDP) compared to the current level of 4.8% of GDP.
Higher budget deficit will inflate Vietnam’s public debts, which is a big challenge for the ministry in maintaining low capital expenses and improve attractiveness of government bonds.
Đăng ký: VietNam News
