Vietnam- Bonds Gain on Speculation Banks to Lower Interest Rates

by lexie Wed Sep 28, 2011 2:42 pm

September 28, 2011

Bonds Gain on Speculation Banks to Lower Interest Rates

VietFinanceNews.com - Vietnam’s five-year bonds gained on speculation commercial lenders will lower interest rates after inflation slowed for the first time in more than a year.

Consumer prices climbed 22.42 percent in September from a year earlier, easing from a 23.02 percent pace in August, according to figures released by the General Statistics Office on Sept. 24.

“The slowing of inflation on a monthly basis is a positive signal, supporting investors’ expectation that banks will reduce lending rates,” said Luu Hai Yen, an analyst at Thang Long Securities Joint-Stock Co. in Hanoi.

The yield on the benchmark five-year notes fell three basis point, or 0.03 percentage point, to 12.42 percent today, according to a daily fixing from banks compiled by Bloomberg.

The dong was steady at 20,832 per dollar as of 3:48 p.m. in Hanoi, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,628 today, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate. (Bloomberg)

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