Vietnam Bonds Climb Most Since August as Central Bank Adds Funds
http://www.bloomberg.com/news/2011-12-20/vietnam-bonds-climb-most-since-august-as-central-bank-adds-funds.html
By Bloomberg News - Dec 20, 2011 4:24 PM GMT+0700
Vietnam’s five-year bonds gained the most since August after the central bank added cash to the financial system, increasing the amount of funds available for lenders to invest in debt. The dong was little changed.
“Liquidity is good as the
State Bank of Vietnam has been injecting money into the system through open-market operations,” 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. “When loans, real estate and gold investments are risky, banks turn to
government bonds.”
The
yield on the benchmark five-year notes fell eight basis points, or 0.08 percentage point, to 12.47 percent, according to a daily fixing from banks compiled by Bloomberg. That was the biggest decline since Aug. 31.
The dong traded at 21,020 per dollar as of 4:21 p.m. in Hanoi, compared with 21,018 yesterday, according to data compiled by Bloomberg. The central bank fixed the
reference rate at 20,813, unchanged since Dec. 14, according to its website. The dong is allowed to trade 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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