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Bonds decline as stocks rally
Five-year bonds fell this week as a rally in stocks lured investors away from debt. The dong was little changed.
Benchmark yields climbed to a two-week high on speculation funds preferred returns offered by riskier assets as the VN-Index surged 13.9 percent this week, the best performance since November 2006.
The share index climbed to a six-month high Friday and has rebounded almost 60 percent since touching a four-year low on February 24, according to data compiled by Bloomberg.
“The stock market has overcome the worst period and is getting a lot of attention from investors,” said Giang Trung Kien, head of investment analysis at Hanoi-based FPT Securities Joint Stock Co.
The yield on the five-year note jumped nine basis points today to 9.13 percent, versus 9.12 percent at the end of last week, according to a daily fixing price from 10 banks compiled by Bloomberg.
The Vietnamese dong was little changed at 17,775 to the dollar as of 4:14 pm in Hanoi, compared with 17,773 Thursday and 17,783 on May 1, Bloomberg data show.
The central bank fixed the reference rate for Friday’s trading at VND16,938 per dollar, versus VND16,940 Thursday, according to its website. The currency is allowed to trade up to five percent on either side of the set rate.
thanhnien, Bloomberg
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