Macro Report

Macro Report
Vietnam Macro Weekly_20190416

Last week, liquidity in the banking system deteriorated. Interbank interest rates rose during the week and closed out at 4.37% p.a for the overnight tenure and at 4.40% p.a. for the one-week tenure, at +37 bps and +33 bps respectively compared to last week. The central bank net injected an amount of VND 13.54 tn via open market operations, contrasting to a net withdrawal of VND 13.54 tn last week. There was VND 10.2 tn of bills issued then, while VND 17 tn of bills went expired. At the same time, none was lent out via 7-day reverse repo transactions, whereas VND 200 billion of reverse repo contracts expired.

16/04/2019

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Vietnam Macro Weekly_20190408

Liquidity in the banking system improved last week, as the central bank purchased a large amount of foreign currencies and pumped VND into the system. Interbank interest rates decreased during the week, and closed out at 4.00% p.a for the overnight tenure, and at 4.07% p.a. for the one-week tenure (at -30 bps and -27 bps respectively compared to last week). The central bank net withdrew VND 13.54 tn via open market operations compared to the net injection of VND 31.5 tn last week. There was VND 17 tn of bills issued then, while VND 4.9 tn of bills went expired. At the same time, VND 200 billion was lent out via 7-day reverse repo transactions at 4.75% p.a., whereas VND 1.64 tn of reverse repo contracts expired.

08/04/2019

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Vietnam Macro Weekly_20190401

Last week the central bank turned on the liquidity hose, with an amount of VND 31.5 tn via open market operations compared to the net withdrawal of VND 25.36 tn last week. There was only VND 4.9 tn of bills issued then, while VND 37.5 tn of bills went expired. At the same time, VND 1.64 tn was lent out via 7-day reverse repo transactions at 4.75% p.a., whereas VND 2.73 tn of reverse repo contracts expired. Interbank interest rates edged up during the week and closed out at 4.30% p.a for the overnight tenure, and at 4.33% p.a. for the one-week tenure, at +100 bps and +93 bps respectively compared to last week.

01/04/2019

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Vietnam Macro Weekly_20190325

Last week, the central bank continued to withdraw a net amount of VND 25.36 tn via open market operations, a +8.4% WoW rise. There was VND 37.5 tn of bills issued then, while VND 17 tn of bills expired. At the same time, VND 2.73 tn was lent out via 7-day reverse repo transactions at 4.75% p.a., whereas VND 7.6 tn of reverse repo contracts expired. Interbank interest rates moved sideways during the week and closed out at 3.30% p.a for the overnight tenure, and at 3.40% p.a. for the one-week tenure, unchanged compared to last week.

25/03/2019

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Vietnam Macro Weekly_20190318

Last week, the central bank continued to withdraw a net amount of VND 23.4 tn via open market operations. Issuance of bills came to VND 17 tn, whereas no bills went expired. At the same time, VND 7.59 tn was lent out via 7-day reverse repo transactions at 4.75% p.a., while VND 14 tn of reverse repo contracts expired. At the same time, liquidity in the banking system continued to improve. Interbank interest rates dipped to 3.30% p.a, at -68 bps WoW for the overnight tenure, and at 3.40% p.a. at -65 bps WoW for the one-week tenure.

18/03/2019

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Vietnam Macro Weekly_20190311

Last week, the central bank continued to withdraw a net amount of VND 5 tn via open market operations. No bills were issued or went expired. At the same time, VND 14 tn was lent out via 7-day reverse repo transactions at 4.75% p.a., while VND 19 tn of reverse repo contracts expired. Interbank interest rates closed out the week at 3.98% p.a at -18 bps WoW for the overnight tenure, and at 4.05% p.a. at -25 bps WoW for the one-week tenure. Sustained demand continued to be the defining feature of the primary bond market. The VST was the sole issuer in the market, originally offering a total of VND 6.5 tn of bonds. VND 1 tn will be offered for the 5Y tenure, with VND 2 tn for the 10Y tenure, VND 3 tn for the 15Y tenure and VND 500 bn for the 20Y tenure. VND 1 tn of the 10Y tenure and VND 1.5 tn of the 15Y tenure was then added to the offering thereafter.

11/03/2019

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Vietnam Macro Weekly_20190304

Last week, the central bank continued to withdraw a net amount of VND 9.7 tn via open market operations. No bills were issued or went expired. At the same time, VND 19 tn was lent out via 7-day reverse repo transactions at 4.75% p.a., while VND 28.7 tn of reverse repo contracts expired. Liquidity in the banking system was squeezed, which drove up interbank interest rates and closed out the week at 4.15% p.a, at +18 bps WoW for the overnight tenure, and at 4.30% p.a. at +17 bps WoW for the one-week tenure.

04/03/2019

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Vietnam Macro Weekly_20190225

Last week, the central bank continued to withdraw a net amount of VND 72.4 tn via open market operations. No bills were issued or went expired. At the same time, VND 28.7 tn was lent out via 7-day reverse repo transactions at 4.75% p.a. VND 101 tn of reverse repo contracts expired during this time. Despite the net OMO withdrawal, liquidity in the banking system continued to improve, driving down interbank interest rates. Interbank rates closed out the week at 3.94% p.a, at -55 bps WoW for the overnight tenure, and at 4.13% p.a. at -51 bps WoW for the one-week tenure.

25/02/2019

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Vietnam Macro Weekly_20190218

Liquidity improvement in the banking system after the Tet holiday drove down interbank interest rates. Interbank rates closed out the week at 4.52% p.a, at -38 bps WoW for the overnight tenure, and at 4.64% p.a. at -41 bps WoW for the one-week tenure. The central bank net withdrew VND 51.6 tn via open market operations. No bills were issued or went expired. At the same time, VND 13.8 tn was lent out via 7-day reverse repo transactions at 4.75% p.a., while VND 65.4 tn of reverse repo contracts expired.

18/02/2019

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Vietnam Macro Weekly_20190211

During the last week before Tet holiday, despite a huge net injection of liquidity derived from both OMO operations and forex purchases from the central bank, demand for liquidity in the banking system increased in the week before the Tet holiday. Interbank rates picked up, closing out the week at 4.90% p.a at +90 bps WoW for the overnight tenure, and at 5.05% p.a. at +75 bps WoW for the one-week tenure. The central bank net injected VND 52.3 tn via open market operations. No bills were issued or went expired. At the same time, VND 20.2 tn was lent out via 21-day reverse repo transactions at 4.75% p.a, and VND 32 tn was lent out via 14-day reverse repo transactions at 4.75% p.a. Meanwhile, no reverse repo contracts expired.

11/02/2019

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Vietnam Macro Weekly_20190128

Last week with the tailwinds of support from the central bank, liquidity in the banking system remained on track. Interbank rates displayed stability, closing out the week at 4.20% p.a. This was unchanged WoW for the overnight tenure, and a slight inch up to 4.47% p.a. at +2 bps WoW for the one-week tenure. The central bank net injected VND 47.5 tn via open market operations. No bills were issued or went expired. At the same time, VND 67 tn was lent out via 28-day reverse repo transactions at 4.75% p.a, and VND 33.3 tn was lent out via 21-day reverse repo transactions at 4.75% p.a. Meanwhile, VND 52.82 tn of reverse repo contracts expired.

28/01/2019

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Vietnam Macro Weekly_20190121

Last week, the central bank continued its USD purchase wave, and continued to inject large amounts of liquidity via VND into the banking system. Interbank rates therefore continued to dip, closing out the week at 4.20% p.a at -43 bps WoW for the overnight tenure, and at 4.45% p.a. at -28 bps WoW for the one-week tenure. The central bank net injected VND 5 tn via open market operations. No bills were issued or went expired. At the same time, VND 52.82 tn was lent out via 7-day reverse repo transactions at 4.75% p.a, while VND 47.85 tn of reverse repo contracts expired.

21/01/2019

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Vietnam Macro Weekly_20190114

Last week, the central bank bought a large amount of USD ($700 mn bought within only the first 3 days of the week), and hence injected a large amount of VND liquidity into the banking system. Interbank rates therefore continued to dip, closing out the week at 4.63% p.a at -17 bps WoW for overnight tenures, and at 4.73% p.a. at -12 bps WoW for the one-week tenure. The central bank net withdrew VND 12.8 tn via open market operations. No bills were issued or went expired. At the same time, VND 39.9 tn was lent out via 7-day reverse repo transactions at 4.75% p.a, while VND 52.66 tn of reverse repo contracts expired.

14/01/2019

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Vietnam Macro Weekly_20190107

Last week, interbank rates cooled down after banks met their reserve requirement as of the end of last month. Interest rates closed out the week at 4.80% p.a at -20 bps WoW for the overnight tenure, and at 4.85% p.a. at -15 bps WoW for the one-week tenure. The central bank net withdrew a large amount of VND 46.78 tn via open market operations. No bills were issued or went expired. At the same time, VND 30.64 tn was lent out via 7-day reverse repo transactions at 4.75% p.a, while VND 77.42 tn of reverse repo contracts expired.

07/01/2019

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Vietnam Macro Weekly_20190102

Last week, demand of banks for liquidity rose sharply by the end of the year. The central bank supported the market by net injecting an amount of VND 27.63 tn via open market operations. No bills were issued, while VND 3 tn of bills went expired. At the same time, VND 77.42 tn was lent out via 7-day reverse repo transactions at 4.75% p.a, while VND 52.8 tn of reverse repo contracts expired. Despite the support from the central bank, interbank rates soared up, closing out the week at 5.00% p.a at +32 bps WoW for the overnight tenure, and with 5.00% p.a. at +3 bps WoW for the one-week tenure.

02/01/2019

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