Vietnam’s bonds advance on speculation bank demand increasing

Vietnam’s five-year bonds gained for a second day on speculation demand from lenders increased after the central bank pumped funds into the financial system.
The State Bank of Vietnam injected a net 21 trillion dong ($1 billion) into the banking system last week through open- market operations, said Luu Hai Yen, a Hanoi-based analyst at Thang Long Securities Joint-Stock Co.

“Demand for bonds from commercial lenders has been on the rise as their liquidity improved,” Yen said.

The yield on the benchmark five-year notes fell one basis point, or 0.01 percentage point, to 12.48 percent, according to a daily fixing from banks compiled by Bloomberg.

Bond yields will likely not increase over the next month as banks are cutting lending rates following a request from the central bank, Yen said.

The dong was little changed at 20,832 per dollar as of 3:01 p.m. in Hanoi, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,628 today, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.
Bloomberg

Tags: Vietnam banking industry, Vietnam bonds, Vietnam finance, Vietnam financial

Posted by VBN on Sep 15 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry