Bloomberg News

Vietnamese Bonds, Dong Are Little Changed as Banks Hoard Cash

November 23, 2011

Nov. 23 (Bloomberg) -- Vietnam’s government bonds and the dong were little changed on speculation banks are holding onto cash to meet the potential rise in consumer withdrawals as the traditional new year holidays approach.

The yield on the benchmark five-year notes was 12.436 percent, compared with 12.442 yesterday, according to a daily fixing from banks compiled by Bloomberg. Vietnam will celebrate its week-long Lunar New Year, known as Tet, from Jan. 23.

“Bond yields will probably hover around these levels from now to the year-end as demand is pretty low,” said Pham Phuong Lan, the Hanoi-based head of fixed income and currency trading at the Bank for Investment & Development of Vietnam.

The dong was unchanged at 21,009 per dollar as of 4 p.m. in Hanoi, according to prices from banks compiled by Bloomberg. The State Bank of Vietnam fixed its daily reference rate at 20,803, unchanged from Oct. 28, 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: Simon Harvey

VND%

To contact the reporter on 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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