Dec. 6 (Bloomberg) -- Vietnam’s one-year bonds advanced on speculation consumer-price gains will slow and interest rates will be cut. The dong was little changed.
Inflation is under control and the pace of price increases will slow to about 9 percent next year, Prime Minister Nguyen Tan Dung said today. Consumer prices increased by 20 percent in November from a year earlier, down from this year’s high of 23 percent in August, official data show. The government has asked the State Bank of Vietnam to consider lowering interest rates, Vu Duc Dam, chairman of the government office, said Dec. 1.
“Yields are declining because investors are expecting that interest rates will come down,” said Cao Tan Phat, a Ho Chi Minh City-based analyst at ACB Securities Co.
Yields on one-year government debt fell 10 basis points, or 0.10 percentage point, to 12.78 percent, according to a daily fixing from banks compiled by Bloomberg.
The dong traded at 21,008 per dollar as of 2:43 p.m. in Hanoi, compared with 21,011 yesterday, according to data compiled by Bloomberg. The central bank set the reference rate at 20,803, unchanged since Oct. 28, its website showed. The currency is allowed to trade up to 1 percent on either side of the official rate.
--Nguyen Kieu Giang. Editors: Andrew Janes, Simon Harvey
To contact Bloomberg News staff for this story: Nguyen Kieu Giang in Hanoi at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com