Vietnam Government Bonds: Yields Rise as Demand Weakens at May 27 Auction

Vietnam’s State Treasury raised VND 11,430 billion (about US$434 million) at its May 27 government bond auction, with weak demand again evident across longer-dated tenors as yields continued to edge higher, according to a release from the Vietnam Bond Market Association.

The Treasury had offered VND 17,000 billion (about US$645 million) across five maturities, though only around 67 percent was absorbed. Demand was strongest for five-year bonds, which were fully subscribed with VND 11,000 billion in bids against a VND 6,000 billion offering.

Ten-year bonds, typically the Treasury’s key funding tenor, saw softer appetite. The Treasury raised VND 5,150 billion from the VND 9,000 billion on offer, while the winning yield climbed 4 basis points from the previous session to 4.25 percent.

The auction also highlighted continued reluctance toward ultra-long duration debt. Only 10 percent of the 15-year issuance and 6 percent of the 30-year issuance were sold, despite yields reaching 4.27 percent and 4.5 percent respectively.

Five-year bond yields also rose, increasing 5 basis points to 4 percent. Rising yields generally suggest investors are demanding higher returns to absorb government debt, often reflecting tighter liquidity conditions or growing inflation expectations.

Year-to-date, the Treasury has issued VND 159,186 billion (about US$6.04 billion) in government bonds, completing roughly 31.8 percent of its 2026 issuance target of VND 500,000 billion (about US$18.98 billion).

Ten-year bonds continue to dominate issuance this year, accounting for VND 138,421 billion (about US$5.25 billion), or almost 87 percent of total issuance. Five-year bonds accounted for VND 18,205 billion (about US$691 million), while 15-year bonds accounted for VND 2,350 billion (about US$89 million).

TABLE: Vietnam Government Bond Auction Results May 27, 2026