Vietnamese bond prices hit their lowest in several months as banks, major buyers of debt assets, reported lower liquidity and as the state seeks to keep down its borrowing.
The one-year yield climbed 0.1138 percentage point to its highest since June 2014 at 5.0938 percent, while the two-year yield hit a level unseen in nine months at 5.3063 percent, according to Reuters fixing data.
Both the three-year and five-year bond yields hit multi-month highs, while yields on the key longer-term bonds eased from highs hit in previous sessions that had not been not seen since early this year, Reuters data showed.
Analysts said demand for bonds fell as banks, which according to government data held more than 80 percent of government bonds as of late last year, have less short-term cash on hand because of rising credit growth.
Vietnamese lenders expect to post an annual credit growth of nearly 17 percent in 2015, faster than last year's 14.16 percent, as demand for loans showed signs of quickening from March, the central bank said on Monday on its sector survey.
Keeping down prices in the primary bond market has also been part of the government's plan to achieve low funding costs for the state budget, top brokerage Saigon Securities Incorp said in a client note on Monday.
Fixings of Vietnamese bond yields are calculated daily by Reuters, using bid and ask yield rates contributed by both foreign and domestic banks prior to 0400 GMT.