July 5 (Bloomberg) -- Vietnam’s five-year bonds gained for a third day on speculation banks bought the securities as a decline in the benchmark money-market rate made it cheaper to buy debt with borrowed funds. The dong was steady.
Yields fell four basis points, or 0.04 percentage point, to 9.73 percent in Hanoi, according to a daily fixing from banks compiled by Bloomberg. The overnight interbank deposit rate dropped for a second day, falling eight basis points to 4.64 percent, according to data from banks compiled by Bloomberg.
“Interbank rates dropped since the availability of cash at some lenders increased,” said Nguyen Thi Ngoc Anh, the Ho Chi Minh City-based head of fixed-income trading at Asia Commercial Bank.
The dong traded at 20,885 per dollar as of 4:00 p.m. in Hanoi, compared with 20,890 yesterday, according to data compiled by Bloomberg. The central bank set its reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade as much as 1 percent on either side of the fixing.
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