Vietnam's three-year bonds rose for a fifth day, the longest winning streak in more than five months, on speculation banks invested surplus cash in debt as money- market rates fell. The dong was little changed.
The interbank overnight deposit rate declined 54 basis points, or 0.54 percentage point, to 3.58 percent today, according to daily fixings by banks compiled by Bloomberg. The measure has fallen 92 basis points since Jan. 2, signaling funding availability has increased. Credit growth may be slow in the first few months of 2013, Prime Minister Nguyen Tan Dung said in his New Year's message posted on the government's website Jan. 1.
"The interbank market is well supplied," said Nguyen Thi Ngoc Anh, head of fixed-income trading at Asia Commercial Bank in Ho Chi Minh City. "Almost all the local banks have surplus money, so they are seeking to invest in short-term government bonds."
The yield on three-year notes fell five basis points to 9.10 percent in Hanoi, according to a daily fixing from banks compiled by Bloomberg. That's the lowest level since May 21 and marks the longest run of declines since July 26.
The dong traded at 20,843 per dollar as of 2:17 p.m. in Hanoi, the same rate as Jan. 4, according to data compiled by Bloomberg. The State Bank of Vietnam set its reference rate at 20,828, unchanged since December 2011, according to its website. The currency is allowed to trade as much as 1 percent on either side of the fixing.