Vietnam bond yields at 4-mth high; inflation seen rising
HANOI, Sept 10
HANOI, Sept 10 (Reuters) - Vietnam bonds fell on Tuesday, with yields reaching their highest in more than four months on declining demand amid fears of rising inflation in September, analysts said.
Yields on government bonds on one-year terms increased 0.07 point to 6.82 percent, the highest since May 9, according to Reuters fixings data at 0551 GMT.
Two-year bond yields and three-year bond yields both rose 0.04 point to 7.57 percent and 7.83 percent, the highest since April 12 and April 26 respectively. Five-year bond yields were at 8.51 percent, passing a May 10 peak.
Vietnam's inflation was relatively flat between March and July but government data showed it had edged up 0.83 percent in August from the previous month. Several securities firms expected the trend to continue.
"We suppose that yields for short term bonds would mildly increase on the back of expected higher CPI in September," Vietcombank Securities wrote in its note to clients on Monday, referring to the consumer price index.
Demand for debt has been subdued in the past few months, in contrast to the first quarter, when Vietnam's bond market was one of Asia's most active. The State Treasury and banks last week auctioned 8 trillion dong ($380 million) worth of bonds but sold only 16 percent of that, or 1.29 trillion dong. ($1=21,080 dong) (Compiled by Hanoi Newsroom; Editing by Martin Petty)
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