Jan. 6 (Bloomberg) -- Vietnamese government bonds rose, pushing yields to a two-week low, on speculation demand for the securities have risen. The dong strengthened.
“Demand for bonds increased a little bit since some banks, which have idle funds, bought the notes on the secondary market as the State Treasury hasn’t offered any new debt this year,” said Pham Phuong Lan, the Hanoi-based head of fixed-income and currency trading at the Bank for Investment & Development of Vietnam.
The yield on the benchmark five-year bonds climbed four basis points, or 0.04 percentage point, to 12.52 percent, according to a daily fixing from banks compiled by Bloomberg. That was the lowest level since Dec. 22. The rate dropped three basis points this week. The dong strengthened 0.1 percent today and this week to 21,030 per dollar, according to prices from banks compiled by Bloomberg.
The State Bank of Vietnam fixed its daily reference rate at 20,828, unchanged from Dec. 26, 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, Anil Varma
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