Demand for G-bonds improved on the primary market thanks to a decline in YoY headline CPI to 6.3%, enhancing investors’ sentiment on potential rate cut. Moreover, while demand for loans remains low, banks plough their excess liquidity into bonds. These reasons have helped drive yields lower. Of note, the government plans to issue VND25.2tn of T-bonds in Q4 and already sold 29% of this in the first two weeks of October, a good start.