The availability of funds at Vietnam’s banks has improved following the Lunar New Year holidays that ended on Jan. 27, Nguyen Thi Hong, the central bank’s monetary policy director, told reporters on Feb. 4. The country’s monetary policy will aim to ease market interest rates, according to a government statement released the same day.
“Banks still have a lot of demand for bonds as they speculate interest rates will drop,” said Cao Tan Phat, a Ho Chi Minh City-based analyst at ACB Securities Inc. “Liquidity at banks is quite abundant.”
The yield on the government’s five-year bonds slid five basis points to 12.36 percent, the lowest since Oct. 14, according to daily fixings from banks compiled by Bloomberg.
The dong strengthened 0.2 percent to 20,958 per dollar as of 3:50 p.m. in Hanoi, according to data compiled by Bloomberg. The central bank set the daily reference rate at 20,828, unchanged since Dec. 26, its website showed. The currency is allowed to trade up to 1 percent on either side of the rate.
To contact Bloomberg News staff for this story: Diep Ngoc Pham in Hanoi at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com