Still Bearish Local Debt

We maintain our bearish outlook on Vietnam's local debt, a view we have been running since June last year, when then yield on the benchmark 5-year government bond was at 9.38%. Now trading at 11.8%, we believe further downside is in store, in view of the sharp monetary tightening that will be needed in 2010 to rein in the widening trade deficit and stem accelerating inflation.

To read the full article, please choose one of the following options: