June 14 (Bloomberg) -- Vietnam’s benchmark bonds dropped, pushing the five-year yield up by the most in three weeks, as higher rates for loans between banks sapped demand for debt. The dong was little changed.
“Interbank rates have increased recently and spurred investors to seek higher return in bonds,” said Do Hoang Quynh Trang, a fixed-income trader at Hanoi-based Ocean Commercial Joint-Stock Bank. “The increases in bond yields are probably just temporary.”
The overnight interbank deposit rate rose 16 basis points, or 0.16 percentage point, to 4.29 percent today, according to data from banks compiled by Bloomberg.
The yield on the five-year notes climbed for a third day, adding six basis points to 9.57 percent, according to a daily fixing rate from banks compiled by Bloomberg. That’s the biggest increase since May 22.
The dong traded at 20,958 per dollar as of 3:53 p.m. in Hanoi, compared with 20,965 late yesterday, according to data from banks compiled by Bloomberg. The central bank set the reference rate at 20,828 per dollar, unchanged since Dec. 26, according to its website. The currency is allowed to fluctuate by as much as 1 percent on either side of the official rate.
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