Vietnam 1-Year Bonds Rise on Interest-Rate Outlook; Dong Steady

Vietnam’s one-year bonds advanced, driving the yield to a 33-month low, on speculation the government will lower local fuel prices, helping slow inflation and increasing room for interest-rate cuts. The dong was steady.

The finance ministry will consider cutting gasoline prices if global petroleum prices extend declines, online newswire VnExpress reported today. Prime Minister Nguyen Tan Dung told the central bank to “speed up” reductions in borrowing costs to help businesses, the government said on May 9. State Bank of Vietnam Governor Nguyen Van Binh said in March the monetary authority would cut rates by 100 basis points in each of the second, third and fourth quarters.