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Bonds fall as government may offer higher yields
Bonds Tuesday fell on speculation the government will offer higher yields at coming debt auctions to lure bidders. The dong was little changed.
The yield on benchmark five-year notes climbed three basis points to 9.3 percent, the highest in a week, according to a daily fixing price from about 10 banks compiled by Bloomberg. It reached 8.46 percent on February 13, the lowest since November 2007. A basis point is 0.01 percentage point.
“The uptrend for bond yields is getting more concrete as the government has raised interest rates for its bonds at the past two auctions to lure investors, and will do so in the coming auctions,” said Tran Kieu Hung, a Hanoi-based trader at Bank for Investment & Development of Vietnam, known as BIDV.
The dong traded at 17,782 per dollar as of 3:49 p.m. local time Tuesday, little changed from 17,783 Monday, according to data compiled by Bloomberg. The State Bank of Vietnam set Tuesday’s reference rate at 16,936 versus 16,938 Monday, the bank’s website showed. The currency is allowed to trade up to 5 percent on either side of the official rate.
thanhnien, bloomberg
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