June 20 (Bloomberg) -- Vietnam’s five-year bonds fell for a seventh day, the longest run of losses since April 2008, on speculation banks have less funds to invest as they target higher lending. The dong advanced.
The government will aim for monthly credit growth of 2 percent in the second half of this year and full-year expansion of 12 percent to 13 percent, Deputy Prime Minister Nguyen Xuan Phuc told the National Assembly last week without giving comparative numbers. Bank lending fell in the first five months of the year, Prime Minister Nguyen Tan Dung said on a radio broadcast last month.
“Instead of purchasing bonds, banks are focusing on lending to reach the credit growth target,” Tran Thi Thanh Thao, a Hanoi-based analyst at MB Securities Joint-Stock Co., wrote in a research note yesterday.
The yield on the five-year securities rose one basis point, or 0.01 percentage point, to 9.71 percent, according to a daily fixing from banks compiled by Bloomberg. It has risen 26 basis points since June 11.
The dong strengthened 0.1 percent to 20,935 per dollar as of 2:19 p.m. in Hanoi, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,828, a level unchanged since Dec. 26, according to its website. The currency is allowed to trade as much as 1 percent on either side of the rate.
To contact Bloomberg News staff for this story: Diep Ngoc Pham in Hanoi at email@example.com
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org