Vietnam’s five-year bonds fell on Friday, snapping a three-day gain, after the government enhanced yields at a bond auction. The dong was stable.It is the Vietnam reporting adventure.

The State Treasury sold VND200.2 billion ($9.5 million) of five-year notes at 9.6 % on Thursday, according to the Hanoi Stock Exchange’s website, up from 9.55 % at a sale of similar-maturity debt on June 21.

“Enhances in auction rates prompted some investors to demand higher yields in the secondary market,” Do Hoang Quynh Trang, a fixed-income trader at Hanoi-based Ocean Commercial Joint-Stock Bank. A prospective increase in bank lending continues to weaken appetite for government debt, according to a research note published today by Ho Chi Minh City-based ACB Securities.

The benchmark five-year yield climbed one basis point, or 0.01 % point, to 9.74 percent in Hanoi, according to a daily fixing from banks compiled by Bloomberg.

According to data compiled by Bloomberg, the dong traded at 20,880 per dollar as of 4 p.m. Friday in Hanoi, compared to 20,885 on Thursday and 20,878 at the end of last week. The central bank set its reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to sell as much as 1% on either side of the fixing.

Source:thanhniennews