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Fixed Income April 2018 - Yields rebound from lows on tighter liquidity

Fixed Income

11 May 2018

Lower demand pushed bond yields up . The 5Y bond yield rose 47 bps MoM to a four-month high of 3.61%, which was the largest monthly increase since June 2015. Bond yields rose across all tenors, as 1) record-low yields triggered strong profit-taking activities; 2) system liquidity subdued; and 3) rising US treasury yields put pressure on bond yields across the region, including Vietnam.

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