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Vietnamese bonds, currency post gains
Vietnam’s benchmark bonds advanced for a fourth day and the dong rose to the highest in almost two months as the government intensified measures to tame inflation.
Prime Minister Nguyen Tan Dung told ministries, cities and provinces to increase inspection of consumer prices in local markets in an attempt to cap costs, according to a statement posted on the government’s website late Tuesday.
The benchmark five-year yield has dropped more than 3 percentage points since June 13 while the dong has advanced 1.5 percent inthe past month.
“Demand for bonds has increased as the yield is now at an acceptable level for investors,” said Hanoi-based Le Duc Tho, head of the investment department at Industrial & Commercial Bank of Vietnam, the country’s fourth-biggest bank.
“The economy is showing signs of stabilizing.”
Tho also forecast yields may decline further in the near future, following recent reductions in lending and deposit interest rates at banks.
The yield on the benchmark five-year note dropped 17 basis points to 17.38 percent, according to a daily fixing price from 10 banks, compiled by Bloomberg.
A basis point is 0.01 percentage point.
The government on August 3 said companies will have their business licenses withdrawn or be prosecuted if they increase fuel prices without justification, according to the website.
The dong rose 0.5 percent to VND16,600 per dollar in Hanoi Wednesday, the strongest since June 10, according to data compiled by Bloomberg.
Thanhnien
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