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Bonds gain on speculation of demand for dong assets
Five-year bonds gained on speculation the government’s measures to stabilize the economy have increased demand for dong denominated assets.
Yields dropped to the lowest since June 10 after the government reported last week that the monthly rise in inflation was the smallest since October.
The benchmark VN-Index of stocks rose 3.87 points, or 0.87 percent, to close at a four-day high of 448.27.
“When the VN-Index advances, bonds will also gain as investors’ sentiment in the market improves,” said Le Duy Hai, senior dealer at the Investment Department at the Hanoi-based Vietnam Bank for Industry and Trade.
The yield on the benchmark five-year note fell 0.12 percentage points to 18.5 percent, according to a daily fixing price from 10 banks compiled by Bloomberg.
The State Treasury plans to auction VND600 billion (US$36 million) worth of five-, 10-, and 15-year bonds today, according to a statement from the Hanoi Securities Trading Center, where the sale will take place.
The dong has strengthened 0.3 percent in July, and is heading for the first monthly gain since January.
The State Bank of Vietnam fixed a daily guidance rate of VND16,497 a dollar Wednesday, compared with VND16,498 Tuesday, according to its website.
The currency is allowed to trade up to 2 percent either side of the rate.
Thanhnien
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