Interest rates fall in G-bond and inter-bank markets

Interest rates of loans in đồng in the inter-bank market reduced 0. 二 五-0. 五0 percentage points. — Photo doisongphapluat.com

HÀ NỘI — Interest rates in inter-bank and G-bond markets have declined significantly despite rising capital demands ahead of Tết (Lunar New Year), the country’s biggest holiday season.

Reports of the Maritime Bank’s economic research division showed that interest rates of loans in đồng reduced 0. 二 五-0. 五0 percentage points in all terms last week to  一. 五 八 per cent for overnight loans,  一. 七 三 per cent for one-week loans,  二. 一 三 per cent for two-week loans and  三. 七0 per cent for one-month loans.

This is different from the previous years when the interest rates often rose significantly few weeks ahead of Tết, which saw rising demand for capital for shopping and other payments. For example, ahead of Tết last year, inter-bank rates surpassed  二 per cent for overnight and one-week loans.

The past week also saw a growing investment in G-bonds as investors bought all VNĐ 三. 五 trillion (US$ 一 五 四. 一 八 million), of which VNĐ 二 trillion were  一0-year G-bonds and VNĐ 一. 五 trillion were  一 五-year G-bonds.

Yields of the bonds dropped sharply by 0. 五 二-0. 七0 percentage points to  四. 三 八 per cent for  一0-year G-bonds and  四. 五 per cent for  一 五-year G-bonds. — VNS