Vietnam's five-year bonds fell on Monday, with yields at the highest level in more than five weeks on increased supply and loss of attractiveness amid concern about a weakening dong currency, traders said.
The yield on five-year government bonds rose 0.075 point to 7.925 percent on Monday, the highest since May 31, according to Reuters fixings data.
High selling volume by foreign investors last month has pushed bond yields up, analysts said, in part due to the central bank depreciation of the Vietnamese dong by 1 percent against the dollar on June 28.
Foreign investors sold a net 6.42 trillion dong ($303 million) of Vietnamese bonds from late May until Monday, according to Saigon Securities.
"Foreign investors' enormous divestment from the Vietnamese bond market in late May tremendously hit this market," said the broker's associate director, Pham Luu Hung. "The underlying reasons ... are concerns on tension in the foreign exchange market and fears of higher dollar interest rates."
Woori CBV Securities said bonds with terms of one year were likely to remain stable in the months ahead. "Short-term bonds are, as usual, preferred than the long-term ones," it said in a client note on Monday.