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Vietnam’s five-year bonds make highest climb in a week
Vietnam’s bonds Wednesday advanced the most in more than a week on speculation slowing inflation will make local debt securities attractive to overseas investors.
Online news service VietnamNet reported Tuesday that food prices will stabilize for the remainder of the year, citing Nguyen Dinh Bich, a senior economist at the government-run Trade Research Institute in Hanoi. Vietnam’s year-on-year inflation slowed in September for the first time since January 2007, the government reported last month.
“Given the global economic slowdown, Vietnamese bonds are becoming more attractive, especially for overseas investors as the economy has been stabilizing and is expected to steadily improve,” said Do Ngoc Quynh, the Hanoi-based head of currency and debt trading at Bank for Investment & Development of Vietnam.
The yield on the benchmark five-year note Wednesday fell for a second day, trimming 13 basis points to 15.91 percent, according to a daily fixing price from 10 banks compiled by Bloomberg. A basis point is 0.01percentage point.
The State Bank of Vietnam set the reference rate for Wednesday’s dong trading at VND16,518 per dollar, compared with VND16,517 Tuesday, according to its website. Banks are allowed to trade the currency as much as 2 percent on either side of the official rate. The central bank is trying to depress the dong to help exports and boost the economy.
The dong weakened 0.03 percent to VND16,595 a dollar as of 4 p.m. Wednesday in Hanoi, according to data compiled by Bloomberg.
Thanhnien
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