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| Vietnam bonds gain as central bank adds funds; dong at 18,477 |
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09-JAN-2010 Intellasia | Reuters |
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9 Jan, 2010 - 7:00:00 AM |
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Vietnam's five-year bonds rose, snapping a three-day decline, after the central bank increased funds in the system, raising speculation lenders will have more money to invest in debt. The dong was little changed.
The monetary authority pumped about 15 trillion dong ($813 million) into the money market to help keep banks' borrowing costs down, Tuoi Tre newspaper reported, citing unidentified bankers.
"Banks increased purchases of debt," said Do Hoang Quynh Trang, a fixed-income trader at Hanoi-based Ocean Commercial Joint-Stock Bank. The central bank injected more than 16 trillion dong this morning, she said by phone Thursday.
The yield on the five-year note dropped 27 basis points to 11.8 percent at 3:17 p.m. local time, according to a daily fixing price from about 10 banks compiled by Bloomberg. A basis point is 0.01 percentage point. It was the biggest decline in yield since December 25.
The overnight interbank deposit rate fell to 9.65 percent from 9.98 percent Wednesday, Bloomberg data showed.
The dong traded at 18,477, compared with 18,479 Wednesday, according to prices from banks compiled by Bloomberg. It touched a record low of 18,500 on November 26. The State Bank of Vietnam has set the daily reference rate for the dong at about 17,941 since December 10. The currency is allowed to fluctuate by as much as 3 percent on either side of that rate.
The currency traded from 19,320 to 19,380 at money changers in HCM City as of 2 p.m., compared with 19,380 to 19,440 Wednesday, according to a telephone directory information service, known as 1080, run by state-owned Vietnam Posts & Telecommunications.
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