Vietnam G-bond yield falls in all tenors

As per the bond report in week between October 29 and November 2 issued by Bao Viet Securities Joint Stock Co (BVSC), the secondary market in week was less exciting with a total trading value of over 1.556 trillion dong, down over 20 percent from the previous week.

Bond transactions for less than 3-year tenors accounted for 49.3 percent of the total trading value, 3-5 year tenor bond accounted for 36.1 percent and 5-10 year tenor bond made up 14.6%. Bond transactions in week were mainly made by repo method.

Transactions of foreigners accounted for nearly 23 percent of the total trading value, mainly for 3-year tenor.

The report also said that the bond yield in week dropped in all terms whereby the G-bond yield for 1-year tenor declined 14 basis points, 5-year tenor saw a fall of 12 basis points and 10-year tenor down three points.

According to BVSC, the deceleration of the consumer price index (CPI) in October eased the pressure of inflation and the target to keep CPI for the whole year 2012 at about 8 percent is considered feasible. This helped reduce the bond yield in all terms in week.

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