Vietnam bonds drop as overnight rates rise; Dong little changed

Vietnam’s five-year bonds declined for a second day, pushing yields to a one-week high, as an increase in money-market rates made it more expensive to buy debt with borrowed funds.

The overnight interbank deposit rate rose to 12.56 percent from 12.40 percent at the end of the last week, according to data compiled by Bloomberg. The measure has averaged 12.45 percent so far this month, up from 11.89 percent in August.

The yield on the benchmark five-year note added one basis point, or 0.01 percentage point, to 12.49 percent, according to a daily fixing from banks compiled by Bloomberg. That’s the highest level since Sept. 5.

The dong was little changed at 20,817 per dollar as of 2 p.m. in Hanoi, from 20,831 on Sept. 9, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,628 today, unchanged since Aug. 23, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.

Source Bloomberg

Tags: Vietnam banking industry, vietnam dong, Vietnam finance, Vietnam financial

Posted by VBN on Sep 13 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