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Vietnam gov’t bond sale fails again
State-run Vietnam Development Bank failed to sell any government debt in an auction of three-year and five-year bonds worth a combined VND600 billion (US$36.08 million), the Hanoi stock market said Friday.
No bidders emerged for the five-year debt worth VND300 billion ($18.04 million) while one bidder sought the three-year bonds at an annual yield of 16 percent, above the 15 percent ceiling the bank was prepared to accept, the exchange said in a statement.
The bank issues bonds on behalf of the government and the proceeds are used to fund the construction of highways, bridges and other state projects.
At the last successful government debt auction on September 26, the bank raised VND85 billion by selling 15-year bonds to three bidders at an annual yield of 15 percent.
Vietnam’s bonds rose on Friday, completing a weekly gain, as the government allowed state-owned Petrolimex to cut gasoline prices, signaling that inflation would slow.
Benchmark yields fell for the third time in four days as Petrolimex, which supplies about 70 percent of Vietnam’s fuel, reduced the price of the country’s most commonly used gasoline grade by 3 percent to VND16,000 a liter ($3.63 a gallon).
The yield on the benchmark five-year note declined 3 basis points to 15.98 percent, according to a daily fixing price from 10 banks compiled by Bloomberg. A basis point equals 0.01 percentage points.
Vietnam’s annual inflation rate slowed last month for the first time since January 2007. Consumer-price gains eased to 27.9 percent from 28.3 percent in August, which was their highest mark since at least 1992.
Thanhnien
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