At the previous auction on April 25, the State Treasury also could not sell any of its debt issue worth 1 trillion dong, the fifth failure in a row since March 7, the Hanoi stock market said.

The last time the State Treasury was successful in the bond sales was on February 28 when it raised 700 billion dong worth of two-year debt with an annual yield of 7.68 percent.

Banks, the frequent buyers of government debts, have been struggling to raise dong funds after the central bank tightened monetary conditions to fight Vietnam's double-digit inflation.

Reuters - May 17, 2008