Vietnam's five-year bonds gained the most since August after the central bank added cash to the financial system, increasing the amount of funds available for lenders to invest in debt. The dong was little changed.
"Liquidity is good as the State Bank of Vietnam has been injecting money into the system through open-market operations," said Vu Anh Duc, a Hanoi-based senior fixed-income dealer at Vietnam Joint-Stock Commercial Bank for Industry and Trade, also known as VietinBank. "When loans, real estate and gold investments are risky, banks turn to government bonds."
The yield on the benchmark five-year notes fell eight basis points, or 0.08 percentage point, to 12.47 percent, according to a daily fixing from banks compiled by Bloomberg. That was the biggest decline since Aug. 31.
The dong traded at 21,020 per dollar as of 4:21 p.m. in Hanoi Tuesday, compared with 21,018 on Monday, according to data compiled by Bloomberg. The central bank fixed the reference rate at 20,813, unchanged since Dec. 14, according to its website. The dong is allowed to trade as much as 1 percent on either side of the rate.