Vietnam’s five-year bonds Monday gained, pushing yields to the lowest level in three weeks, on speculation lenders have spare funds to invest in debt. The dong was little changed.
“Demand for bonds is increasing as some local banks with surplus cash are investing in the notes,” said Nguyen Duc Dung, head of the fixed-income department at Agribank Securities Co.
The yield on the five-year notes fell five basis points to 9.98 percent, the lowest since September 7, according to a daily fixing price from banks compiled by Bloomberg. A basis point is 0.01 percentage point.
Vietnam’s dong was little changed at 17,841 per dollar as of 2:47 p.m. in Hanoi, from 17,842 late last week.
Exporters in the Southeast Asian nation have increased sales of dollars to commercial banks, helping ease the shortage of the US currency, the central bank said in a weekly report on its website, citing lenders.
The State Bank of Vietnam didn’t give any further details on companies’ dollar sales. Exchange rates at banks last week were between 17,835 and 17,841 per dollar, it said.
The central bank’s daily reference rate was fixed at 16,994 Monday, compared with 16,992 on September 25, its website showed. The currency is allowed to trade up to 5 percent on either side of the set rate.