Aug 5, 2011
Vietnam’s benchmark five-year bonds declined for a third week on speculation inflation accelerated in August, which may prompt policy makers to raise interest rates.
Vietnam’s consumer price index is forecast to rise 1 percent in August from July, the magazine Dau Tu Chung Khoan reported today, citing the Ministry of Finance’s domestic market management department. Vietnam will maintain a tight monetary policy in August, Nguyen Xuan Phuc, former-chairman of the government office, said July 24, after inflation jumped to 22.16 percent from a year earlier in July.
The yield on five-year bonds rose seven basis points, or 0.07 percentage point, this week to 12.59 percent, according to a daily fixing rate from banks compiled by Bloomberg. It was four basis points higher from yesterday.
The dong weakened 0.1 percent to 20,605 per dollar as of 4:35 p.m. in Hanoi from the end of last week, according to data compiled by Bloomberg.
The central bank fixed the reference rate at 20,608, unchanged since July 11, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.
--Nicholas Heath. Editor: Simon Harvey
To contact the reporter on this story: Nicholas Heath in Hanoi at nheath2@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.
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