Like previous issues, the bill has a term of 28 days, but the winning interest rate this time increased to 0.9%/year, significantly higher than the interest rate of 0.68%/year in yesterday's session. 11 members participated in the bidding, of which 10 members won the bid.
Thus, in the last 16 treasury bill auctions, the State Bank has withdrawn nearly VND185,700 billion from the system, a figure far exceeding the forecast of a large securities company that the State Bank could withdraw VND130,000 billion.
According to the latest data released by the State Bank of Vietnam, the average interbank VND interest rate at the overnight term (the main term accounts for about 90% of transaction value) in the session of October 11 decreased to 0.37% from 0.66% in the session of October 10 and 0.95% in the session of October 9.
Compared to the interest rate of 1.32% recorded in the session on October 5, the average interbank overnight interest rate has decreased by nearly 1 percentage point.
Interest rates for other key terms also tended to decrease: 1-week term decreased from 1.55% to 0.9%; 2-week term decreased from 1.89% to 1.4%; 1-month term decreased from 1.9% to 1.75%.
The State Bank of Vietnam began using open market operations at the end of September. The purpose was to reduce liquidity in the banking system, in order to support the exchange rate.
According to experts, the open market operation will be the main tool used by the SBV from now until the end of the year. However, the SBV will not reverse its policy this year, and exchange rate risks will decrease after the US Federal Reserve (Fed) stops raising interest rates in the fourth quarter.
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