Vietnam’s Bonds Drop Most in Week as Fund Shortage Hurts Demand
Yields rose to the highest level since Nov. 24 after National Assembly Chairman Nguyen Sinh Hung told lawmakers over the weekend that containing inflation will remain a priority for policy makers in 2012. The State Bank of Vietnam raised its refinancing rate to 15 percent from 14 percent last month to cap consumer-price gains that have averaged almost 19 percent this year, according to official data.
“Commercial banks, which are the main domestic investors in government bonds, are coping with liquidity issues due to monetary policy tightening and seasonal effects of year-end holidays,” said Tran Kieu Hung, a Hanoi-based bond trader at Bank for Investment & Development of Vietnam.
The yield on five-year bonds rose five basis points, or 0.05 percentage point, to 12.48 percent, according to a daily fixing from banks compiled by Bloomberg.
The dong was unchanged today at 21,009 per dollar as of 4:50 p.m. in Hanoi, according to prices from banks compiled by Bloomberg.
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