Yields fell to the lowest since May after Nguyen Xuan Phuc, Minister and Chairman of the Government Office, announced on Thursday an inflation target of 15% for 2009.
Consumer prices rose 28% from a year earlier in August, the biggest increase since at least 1992, official figures show.
While the inflation target for next year is 15%, “we will strive to bring inflation to about 12.6% in 2009,” Phuc said at a conference in Hanoi.
The yield on the benchmark five-year note fell three basis points to 16.09%, according to a daily fixing from 10 banks compiled by Bloomberg.
A basis point equals 0.01 percentage point.
“Many investors expect inflation will be better next year, so that they are interested in buying long-term debt,” said Nguyen Thu Hong, the Hanoi-based head of Saigon Securities Inc.’s treasury department.
The Vietnamese dong fell 0.06% to VND16,595 per dollar, taking this week’s drop to 0.36%.
The State Bank of Viet Nam set the reference rate for dong trading at VND16,496 a dollar Friday, compared with VND16,497 on Thursday, according to its website.
The currency is allowed to trade by up to 2% on either side of that rate. (Bloomberg)
