Bloomberg News

Vietnam Bonds Decline as Money-Market Rates Climb; Dong Steady

August 21, 2012

Vietnam’s five-year bonds fell, pushing yields to the highest level in almost a week, as an increase in money-market rates made it costlier to buy debt with borrowed funds. The dong was unchanged.

The overnight interbank deposit rate rose 47 basis points today to 3.68 percent, the highest level since July 24, according to data compiled by Bloomberg. The measure rose 224 basis points in the past week. The State Treasury will offer 2 trillion dong ($96 million) each of two- , three- and five-year debt at an auction today, according to an Aug. 15 statement on the Hanoi Stock Exchange website.

“Money-market rates increased today, and the bond market had the same movement,” said Tran Kieu Hung, a Hanoi-based bond trader at Bank for Investment & Development of Vietnam.

The yield on benchmark five-year bonds rose 1 basis point, or 0.01 percentage point, to 9.62 percent, according to a daily fixing rate from banks compiled by Bloomberg.

The dong traded at 20,845 per dollar as of 5:13 p.m. in Hanoi, unchanged from yesterday, according to data compiled by Bloomberg. The State Bank of Vietnam set its reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.

To contact the reporter on this story: Nick Heath in Hanoi at

To contact the editor responsible for this story: James Regan at

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