Vietnam sells only 42.5% g.b on sept 99, yields up on lower demand

Vietnam sold VND850 billion out of VND2 trillion government bond offers on September 29, the Hanoi Stock Exchange said on its website.

Bidders bought VND350.1 billion out of VND1 trillion worth of 3 year bonds offered at a yield of 12.1% p.a., rising 0.05% from previous auction.

Bidders also bought VND0.5 trillion worth of 5 year bonds , or 50% of the offer, at a yield of 12.15% p.a., 0.05% higher than that in previous auction.

In September, the State Treasury raised a total VND6.552 trillion worth of government bonds of which VND3.585 were 3 year tenors, and VND2.967 were 5 year ones.

Vietnam inflation eased to 22.42% in September from 32.02% in August, the first contraction since August 2010.

Vietnam central bank put a cap of 6% on non-term deposits and under 1 month term ones while keeping the ceiling 14% on other terms.

The dong was unchanged at 20,834/ dollar today in Hanoi. The central bank fixed the reference rate at 20,628 today, unchanged since Aug. 24. The currency is allowed to trade up to 1 percent on either side of the rate.

The deputy Prime Minister Vu Van Ninh has requested the SBV to hold key interest rate in the coming time and find ways to pull down interest rate in line with easing inflation.

Source Scarlet D./ Analyst / StoxPlus

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