The yield on Vietnam's five-year bonds fell the most in six weeks after the central bank cut borrowing costs. The dong was steady.
The State Bank of Vietnam lowered the repurchase, or open-market operations, rate to 5.5 percent from 6 percent, effective today, according to an e-mail from the monetary authority.
The reduction will "help banks get more liquidity so they can buy more bonds," said Nguyen Duy Phong, a Ho Chi Minh City-based analyst at Viet Capital Securities Co.
The yield on the five-year securities slid 17 basis points, or 0.17 percentage point, today to 8.19 percent, according to a daily fixing from banks compiled by Bloomberg. That was the biggest drop since June 6. The yield also fell 17 basis points this week.
The dong was steady today and this week at 21,223 per dollar as of 4:27 p.m. in Hanoi, according to data compiled by Bloomberg. The central bank set the reference rate at 21,036, a level unchanged since June 28, according to its website. The currency is allowed to trade as much as 1 percent on either side of the fixing.