Vietnam's bonds have best week since March on "ample demand'

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Vietnam's bonds completed their best week since March as investors bid for more than three times the amount of government securities offered at an auction. The dong was little changed.

The State Treasury sold 2 trillion dong ($95 million) of five-year notes to yield 7.3 percent yesterday, with bids received for 6.15 trillion dong, according to the Hanoi Stock Exchange website. That compares with 7.78 percent at the previous auction.

The "bid-to-cover ratio was three times, still implying ample demand," Saigon Securities Inc. wrote in a note today.

The five-year yield slumped 46 basis points, or 0.46 percentage point, in five days to 7.32 percent, the biggest weekly decline since March 29, according to a daily fixing from lenders compiled by Bloomberg. The rate rose eight basis points today.

The dong traded at 21,016 per dollar as of 3:35 p.m. in Hanoi, compared with 21,013 a week ago, data compiled by Bloomberg show. 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 daily fixing.

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