Bloomberg News

Vietnam’s 3-Year Bonds Drop After Demand Falls Short at Auction

November 25, 2011

Nov. 25 (Bloomberg) -- Vietnam’s three-year bonds declined after demand fell short of the amount offered at a government debt auction. The dong was little changed.

The State Treasury sold 17 billion dong ($809,000) of five- year notes yesterday, compared with a target of 1 trillion dong, according to the Hanoi Stock Exchange’s website. It failed to sell any of the three-year securities offered.

“There’s little demand for bonds from banks toward the end of the year as liquidity is their top concern,” said Do Hoang Quynh Trang, a fixed-income trader at Hanoi-based Ocean Commercial Joint-Stock Bank. “Companies usually withdraw cash to pay salaries and bonuses during this time of year.”

The yield on the three-year bond climbed three basis points, or 0.03 percentage point, to 12.38 percent, according to a daily fixing price from banks compiled by Bloomberg.

The dong traded at 21,014 per dollar as of 4:30 p.m. in Hanoi, according to data from banks compiled by Bloomberg. The central bank set the reference rate at 20,803 today, unchanged from Oct. 28, according to its website.

--Diep Ngoc Pham. Editors: Anil Varma, Sandy Hendry

To contact Bloomberg News staff for this story: Diep Ngoc Pham in Hanoi at dpham5@bloomberg.net

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


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