Vietnam govt bond sales fail due to high yield bids, low yield offers

HANOI, April 17 (Reuters) – Vietnam’s State Treasury failed to sell any government bonds because bidders sought higher yields than the Treasury was prepared to accept, the Hanoi stock market said.

Bidders offered to buy two-year bonds at yields of between 8.2-9.5 percent but the treasury’s ceiling was 7.6 percent.

Bidders also sought five-year bonds at between 8.8 – 9.2 percent, well above the State Treasury’s ceiling of 7.9 percent.

The State Treasury had hoped to raise 1 trillion dong in the bond sale to big infrastructure projects, such as roads, bridges and ports.

At the previous auction of government Vietnamese dong-denominated bonds on March 12, the Treasury also failed to sell any two-year and three-year debt.

The government has pledged 17 trillion dong ($956 million) in economic stimulus, including loan subsidies. State media have reported that more such policies were in the works, but it was unclear how they would be funded.

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