Wednesday, 26/10/2011 09:08

Vietnam’s bonds gain as central bank adds funds; dong declines

Vietnam’s bonds rose for the first time in a week on Tuesday after the central bank added funds to the financial system, raising speculation lenders will have more cash to invest in debt. The dong fell.

The State Bank of Vietnam has since Oct. 19 conducted two auctions of securities per day to pump in cash to the system instead of one previously, according to daily statements issued by the central bank. The monetary authority offers to buy government debt from banks with an agreement to sell them back at a future time and date in return for paying interest.

“Banks’ liquidity has improved after the central bank injected more money,” said Pham Minh Hoang, a fixed-income trader at Hanoi-based Commercial Joint-Stock Bank. “Interest rates for one-week loans are now around 15 percent, down from between 18 percent and 19 percent last week.”

The yield on the benchmark five-year note declined four basis point, or 0.04 percentage point, to 12.44 percent, according to a daily fixing from banks compiled by Bloomberg.

The dong weakened 0.1 percent to 20,976 per dollar as of 4 p.m. in Hanoi Tuesday, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,748, unchanged from Oct. 21, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.

thanhnien, Bloomberg 

Other News

>   HCM_1107: Notice of the record date for bond interest payment (05/11/2011)

>   KDH: Report on a bond private placement (03/10/2011)

>   Vietnam bonds gain on speculation banks to lower interest rates (23/09/2011)

>   NVN: Resolution on converting bonds (22/09/2011)

>   HSBC, Barclays to advise VietinBank’s overseas bond sale (12/09/2011)

>   Experts urge bond market development (08/09/2011)

>   Foreign banks seek to advise CTG's offshore bond (31/08/2011)

>   New regulation may make corporate bond market gloomier (22/08/2011)

>   Vietnam’s bond market growth fastest in the region: ADB (17/08/2011)

>   CPD0912018: Notice of record date for Bond coupon payment (16/08/2011)

Online Services
iDragon
Place Order

Là giải pháp giao dịch chứng khoán với nhiều tính năng ưu việt và tinh xảo trên nền công nghệ kỹ thuật cao; giao diện thân thiện, dễ sử dụng trên các thiết bị có kết nối Internet...
User manual
Updated version