Vietnam Bonds Drop on Inflation Concern
Vietnam’s five-year bonds dropped for a third day, the longest losing streak over the past two months, on inflation concern.
As of the end of October, credit growth limit was 33%, exceeding the cap of 30%, which triggered inflation fear.
Inflation rose for two straight months with consumer price index (CPI) in October up 2.99% from a year earlier after increasing 2.42% in September, the official figures showed.
“Bond yields, which move opposite to bond prices, increased as investors feared of quickening inflation.” said Nguyen Tan Thang, a fixed-income portfolio manager at Ho Chi Minh City Securities Corp.
Five-year bond yield rose 0.04% to 10.23%, the highest level since August, according Bloomberg and three year bond yield rose 07% to 10.5% on Nov 2 according to the Hanoi Stock Exchange . (hnx.vn, Bloomberg)
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