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Vietnam’s benchmark bonds decline
Vietnam’s bonds declined the most in two weeks on speculation a seizure in global credit markets will curb demand for emerging-market assets.
“The on-going international financial rout has made foreign investors increase selling and domestic ones more cautious about buying,” said Nghiem Ngoc Minh, head of the capital management department at the Bank for Agriculture and Rural Development, Vietnam’s biggest bank by assets.
The yield on the benchmark five-year note rose 19 basis points to 15.99 percent, according to a daily fixing price from 10 banks compiled by Bloomberg. A basis point is 0.01 percentage point.
The US Senate approved a US$700 billion financial rescue plan earlier this week. The Bush administration is seeking approval to buy troubled assets from banks to spur lending and prevent more financial companies failing.
The nation’s biggest insurer and two largest mortgage-finance companies were nationalized last month, while Lehman Brothers Holdings and Washington Mutual collapsed.
“There are still concerns that the package won’t avert an international economic slowdown, and these have hurt investment in emerging markets like Vietnam,” Minh said.
The Vietnamese dong dropped 0.03 percent to VND16,600 a dollar as of 4 p.m. Friday in Hanoi, according to prices compiled by Bloomberg. The currency was unchanged from a week ago.
Thanhnien
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