Vietnam Bonds Decline as Stock Market Jumps by Most in Two Years
Vietnam’s three-year bonds fell, with yields rising the most in almost two weeks, on speculation investors favored equities to take advantage of a rallying stock market. The dong strengthened.
The VN Index (VNINDEX) of shares jumped 4 percent today, the most in more than two years, and has surged 30 percent in 2012, the third-best performance among 93 major benchmarks tracked by Bloomberg.
“The strong stock market rally has made investors switch from some of their safe assets into risky assets,” said Nguyen Duy Phong, an analyst at Viet Capital Securities in Ho Chi Minh City.
Three-year bond yields rose seven basis points, or 0.07 percentage point, to 11.53 percent according to a daily fixing rate from banks compiled by Bloomberg.
The dong strengthened 0.7 percent to 20,890 per dollar as of 4:41 p.m. in Hanoi according to prices from banks compiled by Bloomberg. The State Bank of Vietnam fixed its daily reference rate at 20,828, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.
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