Vietnam three-year bond yield at two-month high on inflation

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Vietnam's government bonds fell, driving the three-year yield to the highest since May, on speculation inflation will quicken. The dong was steady.

Consumer-price gains accelerated last month for the first time since January, rising 6.69 percent from a year earlier, official data show. They may increase 6.69 percent to 7.3 percent in July, Saigon Securities Inc. said in a research note released today.

"We have to accept the fact that inflation is edging higher in the second half of the year," Saigon Securities said in the note.

The yield on the three-year securities rose five basis points, or 0.05 percentage point, to 7.7 percent, the highest since May 10, according to a daily fixing from lenders compiled by Bloomberg.

The dong traded at 21,223 per dollar as of 4:17 p.m. in Hanoi, compared with 21,219 yesterday, data compiled by Bloomberg show. The State Bank of Vietnam set its reference rate at 21,036, unchanged since June 28, according to its website. The currency is allowed to trade as much as 1 percent on either side of the daily fixing.

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