Vietnam’s five-year bonds declined on speculation inflation quickened, leaving little room for the central bank to ease monetary policy and bolster economic growth. The dong weakened.
“Investors are still concerned that inflation hasn’t peaked and may keep accelerating this month,” said Luu Hai Yen, Hanoi-based analyst at Thang Long Securities Joint-Stock Co. “There are no signs that inflation will ease and interest rates will decrease.”
The yield rose one basis point, or 0.01 percentage point, to 12.57 percent, according to a daily fixing from banks compiled by Bloomberg.
Vietnam’s inflation accelerated for an 11th straight month in July to 22.16 percent, official data show.
The dong weakened 0.3 percent to 20,802 per dollar as of 4:30 p.m. in Hanoi, according to prices from banks compiled by Bloomberg.
The central bank set the reference rate at 20,608 today, unchanged since July 11. The currency is allowed to trade up to 1 percent on either side of the official rate.
--Nguyen Kieu Giang in Hanoi. Editors: Simon Harvey
To contact the Bloomberg News Staff on this story: Nguyen Kieu Giang in Hanoi at giang1@bloomberg.net
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