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Five-year bond yields rise to three-month high on rates
The government bonds fell for a fourth day, their longest losing streak in four months, on speculation the government is signaling higher yields after it raised coupons on new debt. The dong was little changed.
The State Treasury offered 9.1 percent interest rate for five-year securities last week, compared with 8.9 percent on June 4. The auctions still failed to attract bidders as investors demanded yields that were higher than the government was willing to pay. The benchmark yield climbed to a three-month high in the secondary market.
“Investors expect the government to increase bond coupons further as it is under pressure” to raise funds, said Pham Thu Ha, deputy head of the fixed-income department at Hanoi-based Vietnam Technological & Commercial Joint-Stock Bank. “Yields may continue their uptrend.”
The yield on the five-year note climbed nine basis points to 9.44 percent, the highest level since March 24, according to prices from banks compiled by Bloomberg. A basis point is 0.01 percentage point.
The Vietnamese dong traded at VND17,800 per dollar as of 4:20 p.m. in Hanoi, compared with VND17,801 on June 19, according to data compiled by Bloomberg.
thanhnien, Bloomberg
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