Vietnam’s Benchmark Bonds Advance; Currency Holds Steady
Vietnam’s benchmark bonds advanced for the first day in four as lenders took advantage of recent declines to obtain relatively cheap funds from the central bank. The dong held steady.
“Some banks wanted to increase bond holdings to use the notes as collateral to borrow money from the State Bank for their lending or investment,” said Vu Anh Duc, an analyst at Vietnam Joint Stock Commercial Bank for Industry and Trade. “However, it’s just temporary, for long-term prospect, yields will pick up amid concerns over accelerating inflation.”
The yield on the benchmark five-year note declined to 11.38 percent today, compared with 11.39 when the market closed last week, according to a daily fixing price from banks compiled by Bloomberg.
The dong traded at 19,499 per dollar as of 3:45 p.m. local time, unchanged from the close of last week, according to prices from banks, compiled by Bloomberg. The State Bank of Vietnam set the day’s reference rate at 18,932, a level unchanged since Aug. 18, its website showed. The currency is allowed to trade up to 3 percent on either side of that rate.
In the so-called black market, the dong traded between 21,300 and 21,350 this afternoon, compared with between 21,310 and 21,420 on Friday at money changers and gold shops in Ho Chi Minh City, according to a telephone information service run by the state-owned Vietnam Posts & Telecommunications.
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org