“It is obvious that the government is doing all it can to bolster economic growth,” said Nguyen Tan Thang, a fixed-income portfolio manager at Ho Chi Minh City Securities Corp. “Inflation will quicken as a result of higher credit growth and investors’ concern for quickening inflation has pushed up bond yield.”

The yield on the five-year note rose four basis points to 10.23 percent, the highest level since August, according to a daily fixing price from banks compiled by Bloomberg. It climbed 15 basis points, or 0.15 percentage point, this week.

Inflation gathered pace for a second month in October, with the consumer price index rising 2.99 percent from a year earlier after gaining 2.42 percent in September, official figures show.

The dong traded at 17,862 per dollar as of 4:05 p.m. in Hanoi and earlier Friday touched a record low of 17,863, according to prices from banks compiled by Bloomberg. The currency was 17,859 Thursday and 17,856 at the end of last week.

The State Bank of Vietnam set the daily reference rate at 17,011 on Friday versus 17,009 Thursday. The currency is allowed to fluctuate by as much as 5 percent on either side of that rate.

The currency fetched 18,500 to 18,570 at money changers in Ho Chi Minh City as of 2 p.m., compared with 18,560 to 18,630 in the morning, according to a telephone directory information service, known as 1080, run by state-owned Vietnam Posts & Telecommunications.

Source: Bloomberg