Vietnam’s government bonds fell, snapping an eight-day advance, as a surge in the local money- market rate sapped demand. The dong strengthened.
The overnight interbank deposit rate increased 83 basis points to 3.25 percent, the highest level since May 11, according to data compiled by Bloomberg. The rate has gained 2.03 percentage points since June 6.
“Interest rates in the inter-bank market rose as some banks are in need of cash, and that has brought up bond yields a bit,” said Nguyen Thi Ngoc Anh, the Ho Chi Minh City-based head of fixed-income trading at Asia Commercial Bank. (ACB)
The yield on the benchmark five-year bond advanced five basis points, or 0.05 percentage point, to 9.50 percent, according to a daily fixing from banks compiled by Bloomberg.
The dong strengthened 0.3 percent to 20,930 per dollar as of 3:07 p.m. in Hanoi, according to prices from banks compiled by Bloomberg. The central bank fixed the reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade as much as 1 percent on either side of the rate.
--Nguyen Dieu Tu Uyen. Editors: Andrew Janes, Sandy Hendry
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