Vietnam’s government bonds and the dong were little changed on Thursday ahead of new debt offerings.
The State Treasury plans to sell a total of VND4 trillion ($192 million) of two-, three- and five-year notes today, according to the Hanoi Stock Exchange. State-owned Vietnam Bank for Social Policies will auction VND1.3 trillion of two-, three-, and five-year securities, the exchange’s website shows.
“There’s very little bond trading in the secondary market, since traders want to wait to get a better forward outlook for market interest rates,” said Nguyen Duc Hai, Ho Chi Minh City- based portfolio manager at Manulife Asset Management.
The yield on benchmark five-year bonds was 11.49 percent, and the three-year securities yielded 11.46 percent, according to a daily fixing from banks compiled by Bloomberg.
The dong traded at 20,825 per dollar as of 4:40 p.m. in Hanoi on Thursday, compared with 20,830 on Wednesday, according to data compiled by Bloomberg. The central bank set the daily reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.