Breaking News


Taiwan 10-Year Yields Near Lowest in Two Weeks on Growth Concern

Taiwan’s government bonds were steady, with 10-year yields near the lowest in two weeks, as global funds cut holdings of the island’s stocks on signs a recovery in Asian exports is stalling.

Global funds sold $328 million more Taiwanese shares than they bought today, taking the net sales for the year to $9.9 billion, according to exchange data. Export orders rose 4.38 percent in October from a year ago after a 2.72 percent increase in the previous month, the government reported today. Singapore’s government today forecast 2012 economic growth may be as slow as 1 percent from as much as 5 percent this year.

“Yields have been falling due to concern global growth is weakening,” said James Wang, a fixed-income trader at Yuanta Securities Co. in Taipei. “The recent bond sale has shown insurers are still interested in Taiwan’s long bonds. I think yields have peaked.”

The yield on the 1.25 percent bonds due September 2021, the most-traded government debt, was at 1.322 percent from 1.321 percent last week, which was the lowest level for benchmark 10- year rates since Nov. 3, prices from Gretai Securities Market show.

The local dollar was at NT$30.260 against its U.S. counterpart, from NT$30.257 last week, according to Taipei Forex Inc. It touched NT$30.29 on Nov. 17, the weakest level since Oct. 24.

Stock indexes in Asia slipped for a fifth day amid concern U.S. lawmakers will fail to reach an agreement to cut the budget deficit.

The overnight money-market rate, which measures interbank funding availability, was little changed at 0.398 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.

To contact the reporter on this story: Andrea Wong in Taipei at

To contact the editor responsible for this story: Sandy Hendry at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.