Vietnam’s sovereign bonds fell, pushing the five-year yield to the highest level in more than two months, after the government increased supply.
The yield on the 2019 notes rose 12 basis points to 5.84 percent, the highest since Sept. 11, a daily fixing from lenders compiled by Bloomberg shows. The rate has advanced 67 basis points, or 0.67 percentage point, in November and is poised to snap a five-month decline. The three-year yield climbed nine basis points to 5.05 percent.
The State Treasury raised its 2014 bond-sale plan to 262 trillion dong ($12.2 billion) from 232 trillion dong, according to a Nov. 25 statement on the Hanoi Stock Exchange website. In a separate note on Nov. 21, the exchange said 189.8 trillion dong has so far been issued this year. The government is offering 1 trillion dong each of five-, 10-, and 15-year notes today.
“Bonds fell because supply will increase with the treasury’s debt-sale plan,” said Hanoi-based Ngo Minh Hoa, an account manager at Bao Viet Securities Co.
The dong was little changed at 21,395 per dollar, data compiled by Bloomberg show. The central bank fixed the currency’s reference rate at 21,246 today, where it’s been since June 19, according to its website. The dong is allowed to trade as much as 1 percent on either side of the rate.