Feb. 1 (Bloomberg) -- Vietnam’s one-year government bonds declined on speculation banks have less cash to invest in debt following increased demand for funds during the weeklong new year. The dong fell.
“Banks don’t have much cash to buy bonds now as liquidity is still low after demand for cash increased during the Lunar New Year Holiday,” said Vu Anh Duc, a Hanoi-based senior fixed- income dealer at Vietnam Joint-Stock Commercial Bank for Industry and Trade, also known as VietinBank.
The yield on the one-year notes rose two basis points, or 0.02 percentage point, to 12.70 percent, according to daily fixing prices from banks compiled by Bloomberg.
The dong traded at 21,008 per dollar as of 4:30 p.m. local time, compared with 21,018 yesterday, according to data from banks compiled by Bloomberg.
The central bank set the reference rate at 20,828 per dollar, unchanged since Dec. 26, according to its website. The currency is allowed to fluctuate by as much as 1 percent on either side of that rate.
--Editors: Simon Harvey
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