Vietnam’s bonds gain on speculation foreigners reduced sales

Vietnam’s five-year bonds Tuesday rose for the first time in four days on speculation foreign investors curbed their sales after the US said it would invest about US$125 billion in nine banks.

The dong advanced as stocks climbed worldwide and seven of the 10 most-active currencies in Asia outside of Japan strengthened Tuesday.

The US’s investment in nine of the nation’s biggest banks comes as France, Germany, Spain, the Netherlands and Austria pledged 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders.

The yield on the benchmark five-year note fell 7 basis points to 16.04 percent, according to a daily fixing from 10 banks compiled by Bloomberg. A basis point equals 0.01 percentage point.

“Foreign investors have sold very few bonds Tuesday, compared with Monday, probably driven by relatively positive newsfrom the global market,” said Tran Kieu Hung, a trader at the Bank for Investment & Development of Vietnam in Hanoi.

The Vietnamese dong rose 0.09 percent to 16,590 per dollar as of 3:45 p.m. Tuesday in Hanoi, according to data compiled by Bloomberg.

Thanhnien

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