Vietnam’s government bonds dropped as interbank rates rose, signaling banks have fewer funds to invest in debt.
Vietnam’s five-year bonds rose on speculation interbank interest rates will continue to fall, spurring demand for government securities. The dong was steady.
Interest rates that Kenyan banks use to lend money to each other fell to the lowest level in two months after the government released cash to local counties, boosting liquidity.
Russian banks may need to pay as much as 6 percent to borrow overnight from other lenders by the end of September because of concern that interbank rates will rise in Europe, Alfa Bank said.