Vietnam Bonds Rise on Speculation Banks Have More Cash to Invest

by lexie Fri Feb 24, 2012 10:46 am

February 23, 2012

Vietnam Bonds Rise on Speculation Banks Have More Cash to Invest

Vietnam’s three-year bonds rose on speculation some banks have surplus cash to invest. The dong was steady. The State Bank of Vietnam is limiting lenders’ loan growth to reduce bad debts and boost investor confidence, according to a statement on its website on Feb. 13.

“Liquidity at some big commercial banks has improved as they haven’t lent out too much so far this year because the central bank limited their credit growth,” said Hanoi-based Tran Thanh Thao, a fixed-income analyst at Thang Long Securities Joint-Stock Co. “That has left them with more cash to buy bonds.”

The yield on three-year notes fell two basis points, or 0.02 percentage point, to 11.99 percent, according to a daily fixing from banks compiled by Bloomberg.

The dong was little changed at 20,838 per dollar as of 2:30 p.m. in Hanoi, according to prices from banks compiled by Bloomberg.

The State Bank of Vietnam fixed its daily reference rate at 20,828, unchanged from yesterday, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.

http://www.vietfinancenews.com/2012/02/vietnam-bonds-rise-on-speculation-banks.html#more