Macro Report

By the end of last week, demand for interbank borrowings increased in order for banks to meet reserve requirements. Interbank interest rates thus surged during the week, closing out by the weekend at 4.01% p.a for the overnight tenure at +91 bps WoW, and clocked in at 4.04% p.a. for the one-week tenure at +76 bps WoW. The central bank net pumped liquidity into the market, with a net amount of VND 47 tn via open market operations. VND 33 tn of 7-day bills were issued, while VND 68 tn of 7-day bills expired. At the same time, only VND 12 tn was lent out via reverse repo transactions, while VND 21 bn expired.

Last week, interbank interest rates cooled down throughout the week, closing out by the weekend at 3.10% p.a for the overnight tenure (at -18 bps WoW), and settled in at 3.28% p.a. for the one-week tenure, at -12 bps WoW. The central bank net withdrew an amount of VND 3.18 tn via open market operations. VND 68 tn of 7-day bills were issued, while VND 64.8 tn of 7-day bills expired. At the same time, only VND 21 bn was lent out via reverse repo transactions, while none went expired.

Last week, interbank interest rates increased throughout the week, closing out by the weekend at 3.28% p.a for the overnight tenure at +13 bps WoW, and settled in at 3.40% p.a. for the one-week tenure, at +12 bps WoW. The central bank continued to net pump an amount of VND 5.65 tn via open market operations. VND 64.8 tn of 7-day bills were issued, while VND 70.45 tn worth of 7-day bills had expired. At the same time, none was lent out nor went expired via reverse repo transactions.

Last week, interbank interest rates rose on Monday due to high borrowing demand to meet requirements on required reserves. Rates then decreased throughout the week, closing out the week at 3.15% p.a for the overnight tenure, at +10 bps WoW, and settled in at 3.28% p.a. for the one-week tenure, at -+6 bps WoW. The central bank net pumped an amount of VND 14.35 tn via open market operations. VND 70.45 tn of 7-day bills were issued, while VND 84.8 tn of 7-day bills expired. At the same time, none was lent out nor expired via reverse repo transactions.

Last week, liquidity in the banking system improved significantly despite sterilization actions by the central bank. Interbank interest rates decreased throughout the week, closing out by the weekend at 3.05% p.a for the overnight tenure at -23 bps WoW, and settled in at 3.23% p.a. for the one-week tenure, at -15 bps WoW. The central bank net withdrew an amount of VND 41 tn via open market operations. VND 84.8 tn of 7-day bills were issued, while VND 43.72 tn of 7-day bills expired. At the same time, reverse repo transactions remained unchanged.

Last week, liquidity in the banking system was moderate. Interbank interest rates remained flat, closing out by the weekend at 3.28% p.a for the overnight tenure (+1 bps), and settled in at 3.38% p.a. for the one-week tenure, at +4 bps WoW. The central bank net pumped an amount of VND 4.9 tn via open market operations. VND 43.7 tn of 7-day bills were issued, while VND 48.7 tn of 7-day bills expired. At the same time, none was lent out via reverse repo transactions, whereas there was VND 98 bn of reverse repo contracts that had expired.

Last week, interbank interest rates rose in the middle of the week on its retrace back towards the weekend. Rates closed out by the weekend at 3.58% p.a for the overnight tenure, unchanged WoW, and at 3.68% p.a. for the one-week tenure, at +7 bps WoW. The central bank net pumped an amount of VND 23.6 tn via open market operations. VND 25.9 tn of bills were issued, while VND 50 tn of bills expired. At the same time, no new reverse repo transactions occurred, whereas VND 515 bn of reverse repo contracts expired.

Last week, demand for liquidity increased for banks to meet required reserve requirements by month’s end. Interbank interest rates rose as a result, closing out the weekend at 3.58% p.a for the overnight tenure and at 3.60% p.a. for the one-week tenure, at +60 bps and +44 bps respectively compared to last week. The central bank net pumped a small amount of VND 209 bn via open market operations. No bills went issued or expired. At the same time, VND 515 bn was lent out via 7-day reverse repo transactions at 4.75% p.a., whereas VND 306 bn of reverse repo contracts expired.

Last week, liquidity in the banking system continued to display improvement. Perhaps in response to the holiday weekend, interest rates were more tranquil. Rates closed out the weekend at 2.98% p.a for the overnight tenure, and at 3.16% p.a. for the one-week tenure, at -109 bps and -96 bps respectively compared to last week. The central bank net withdrew an amount of VND 44.7 tn via open market operations. VND 50 tn of bills were issued, while VND 5 tn of bills expired. At the same time, VND 306 bn was lent out via 7-day reverse repo transactions, whereas no reverse repo contracts expired.

Last week, liquidity in the banking system gradually improved. Interbank interest rates were more tranquil during the week, and closed out at 4.07% p.a for the overnight tenure, and at 4.12% p.a. for the one-week tenure, at -30 bps and -28 bps respectively compared to last week. The central bank continued to net inject VND 5.2 tn via open market operations compared to the net injection of VND 6.6 tn last week. There was VND 5 tn of bills being issued then, while VND 10.2 tn of bills went expired. At the same time, nothing was lent out via 7-day reverse repo transactions, whereas no reverse repo contracts expired.

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.

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.

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.