Vietnam's benchmark five-year bonds rose on speculation yields will fall at a government debt auction on Wednesday. The dong strengthened.
Vietnam's State Treasury will auction VND1 trillion ($48 million) each of two-, three- and five-year notes, according to the Hanoi Stock Exchange.
"Demand for short-term and other government-backed bonds remains solid," Pham Thuy Linh and Trinh Quang Dung, analysts at Vietcombank Securities Co., wrote in a research note Wednesday. The "winning rates" at the auction are likely to remain low or fall slightly, they wrote.
The yield on five-year bonds fell three basis points, or 0.03 percentage point, to 9.85 percent, according to a daily fixing rate from banks compiled by Bloomberg.
The dong rose 0.05 percent to 20,848 per dollar as of 3:20 p.m. in Hanoi on Wednesday, according to data compiled by Bloomberg.
The State Bank of Vietnam set its reference rate for the currency at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side of the fixing.