Bloomberg News

Vietnam Bond Yields at One-Week Low on Rate Outlook; Dong Steady

April 03, 2012

Vietnam’s bonds advanced, with benchmark five-year yields falling to the lowest level in a week, on speculation easing inflation will lead to lower interest rates. The dong was little changed.

Consumer prices rose 14.15 percent in March from a year earlier, the slowest pace in a year, according to data released March 24 by the General Statistics Office in Hanoi.

“There is more demand for bonds as people expect yields will drop further,” said Do Hoang Quynh Trang, a fixed-income trader at Hanoi-based Ocean Commercial Joint-Stock Bank. “Slowing inflation is a factor affecting interest rates.”

The yield on the five-year notes fell two basis points, or 0.02 percentage point, to 11.46 percent, the lowest since March 26, as of 4 p.m. in Hanoi, according to daily fixing prices from banks compiled by Bloomberg. The dong was little changed at 20,828 per dollar, 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 the rate.

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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