Vietnam's State Treasury managed to sell just VND200 billion out of VND2 trillion worth of five-year government bonds auctioned on Friday with a yield of 11.2 percent, the Hanoi Stock Exchange said.
The bonds were sold at the Finance Ministry's ceiling rate, while bids for the rest came in above the ceiling, according to a statement from the exchange.
The Treasury will issue these bonds on June 1, then attempt to sell another 2 trillion dong worth of bonds on June 4, and hold a further auction on June 11, it said.
Despite running one of the region's biggest fiscal deficits, Vietnam has had trouble selling government bonds because it has been loath to offer the higher rates the market has sought.
In an auction on March 18, the State Treasury sold a combined VND600 billion of two-year and three-year bonds out of an offer of VND1 trillion, at a rate of 12-12.1 percent.
The government plans to sell bonds worth 66 trillion dong this year, up 22 percent from the estimated proceeds raised in 2009.