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Bonds gain, driving yields to 11-week low; dong edges up
Vietnam’s bonds gained, driving yields on the benchmark five-year notes to the lowest in 11 weeks, and the dong advanced as expectations the economy will improve helped draw overseas investors.
The yield on the five-year notes dropped 14 basis points to 16.55 percent today, according to a daily fixing price from 10 banks compiled by Bloomberg.
That’s the lowest since May 30. One hundred basis points make up a percent.
Consumer prices rose in July at the slowest pace since October, gaining 1.1 percent on a monthly basis, the government reported last month.
The VN Index of local shares climbed 13 percent this month, the biggest increase among 88 global benchmarks tracked by Bloomberg.
“The macro economy is more stable now,” said Le Duy Hai, senior dealer at the Investment Department at the Hanoi-based Vietnam Bank for Industry and Trade, or VietinBank.
“Foreign banks have been buying the notes since early this month.”
The dong gained 0.4 percent to VND16,625 per dollar as of 3:50 p.m. in Hanoi, according to data compiled by Bloomberg.
The State Bank of Vietnam set a daily reference rate for the currency at VND16,498, compared with VND16,499 Wednesday, according to its website.
The dong is allowed to trade up to 2 percent either side of the rate each day.
Thanhnien
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