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Title: Vietnam: Sell into the Locally-driven VND Bond rally
Category: Economy
Source: Citigroup Global Markets Inc.
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Date: 11/18/2008 Pages: 5 Language: English File Type: Size: 100 Kb
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Summary:
VND bond yields have recently been underwritten at significantly lower yields, driving down secondary levels for VND bonds across the curve, now at 12-13%. For example, VDB was able to place 3-yr paper last week at 11%, 400bps lower than the previous 3yr underwriting done only 10-days earlier. While, near-term rallying could persist as inflation recedes and we think SBV will continue to ease monetary policy further, with bond yields possibly testing the 10-11% range, we are cautious on VND and would recommend investors who still have positions to sell into a VND bond rally in the 12-13% range.
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