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Vietnam bonds have weekly decline on global turmoil
Vietnamese bonds fell for a second week on speculation foreign investors are cutting holdings of emerging-market assets as concern about the global financial crisis deepens.
More than US$25 trillion has been wiped off the value of stock markets worldwide this year on concern the credit crisis will trigger a global recession.
The yield on Vietnam’s benchmark five-year note rose 5 basis points to 16.04 percent from October 3, according to a daily fixing price from 10 banks compiled by Bloomberg. A basis point is 0.01 percentage point and yields move inversely to prices.
“Some foreign investors have been selling more this week because they are concerned that the global crisis will affect the liquidity of their investment portfolios,” said Tran Kieu Hung, a trader at the Bank for Investment & Development of Vietnam in Hanoi.
The Vietnamese currency increased 0.15 percent to close at VND16,590 against the dollar as of5:30 p.m. in Hanoi, according to data compiled by Bloomberg.
The central bank fixed Friday’s reference rate for the currency at VND16,518 per dollar, compared with 16,516 Friday, according to its website. The currency is allowed to trade by as much as 2 percent either side of the official rate.
Vietnam Development Bank failed to sell VND600 billion ($36 million) of three- and five-year bonds Friday, according to an emailed statement from the Hanoi Securities Trading Center, where the auction took place.
Thanhnien
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