Bloomberg News

Vietnam Bonds Slip on Low Demand Before Tomorrow’s Debt Auction

October 26, 2011

Oct. 26 (Bloomberg) -- Vietnam’s government bonds declined on speculation a debt auction tomorrow damped demand for the securities. The dong was little changed.

The State Treasury will auction 1 trillion dong ($48 million) each of three- and five-year notes, according to the Hanoi Stock Exchange’s website.

“Demand for bonds is very low now, especially with five- year notes,” said Nguyen Thi Ngoc Anh, the Ho Chi Minh City- based head of fixed-income trading at Asia Commercial Bank. “Bond yields will rise later this year, and traders will wait for the debt to get cheaper.”

The yield on the benchmark five-year security rose one basis point, or 0.01 percentage point, to 12.45 percent, according to a daily fixing from banks compiled by Bloomberg.

The dong traded at 20,973 per dollar, compared with 20,976 yesterday, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,768 today, weakened from 20,748 yesterday, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.

--Nguyen Dieu Tu Uyen. Editors: Andrew Janes, Simon Harvey

To contact Bloomberg News staff for this story: Nguyen Dieu Tu Uyen in Hanoi at uyen1@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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