Vietnam bonds fall on speculation of further policy tightening

Apr 22, 2011. Vietnam’s five-year bonds dropped this week by the most in five months as banks refrained from purchasing debt on concern the government will further tighten monetary policy to combat surging inflation. The dong gained.

Inflation accelerated to 13.89 percent in March from a year earlier, the fastest pace since February 2009. Bond yields are set to keep rising, Luu Hai Yen, an analyst from Thang Long Securities Joint-Stock Co., wrote in a research report today. The government aims to keep prices from rising more than 7 percent this year.

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