Vietnam’s Bonds Fall After Yields Rise at Auction; Dong Steady

Vietnam’s government bonds fell, pushing the five-year yield to the highest level since May, after the State Treasury sold more debt. The dong was steady.

The government on Oct. 5 auctioned 500 billion dong ($23.9 million) of three-year notes and 850 billion dong of two-year bonds at 9.9 percent and 9.7 percent, respectively, according to Hanoi Stock Exchange. The yields were 10 basis points higher than at a sale of similar-maturity securities on Sept. 27.

“The supply of government bonds in the primary market is expected to continue to be abundant,” analysts including Hoang Nu Ngoc Thuy and Nguyen Thu Linh at Bank for Investment & Development of Vietnam in Hanoi wrote in a research note today. “The State Treasury may hold auctions to sell 2 trillion dong to 3 trillion dong of bonds.”

The yield on the five-year notes rose eight basis points, or 0.08 percentage point, to 10.23 percent, according to a daily fixing from banks compiled by Bloomberg.

The dong traded at 20,890 per dollar as of 3:16 p.m. in Hanoi, unchanged from the end of last week, according to data compiled by Bloomberg. The State Bank of Vietnam set the currency’s reference rate at 20,828, unchanged since Dec. 26, according to its website. The dong is allowed to trade as much as 1 percent on either side of the rate.

— With assistance by Diep Pham

Before it's here, it's on the Bloomberg Terminal. LEARN MORE