Chinese Premier Wen Jiabao said today the world’s second- biggest economy is expected to expand 7.5 percent this year, the lowest goal since 2004. The government sold NT$40 billion ($1.4 billion) of 10-year notes at 1.265 percent on March 3, less than the 1.283 percent median estimate of fixed-income traders in a Bloomberg News survey.
“The bond market has been pricing in slowing economic growth prospects,” said James Wang, a debt trader at Yuanta Securities Co. in Taipei. “Yields continued to drop today after the lower-than-expected auction yield.”
The rate on the government’s 1.25 percent notes due March 2022 fell one basis point, or 0.01 percentage point, to 1.259 percent, prices from Gretai Securities Market showed. That’s the lowest closing level for a benchmark 10-year bond since Dec. 19.
The Taiwan dollar weakened 0.2 percent to NT$29.518 against its U.S. counterpart from March 3 when the market was open to make up for a holiday on Feb. 27, according to Taipei Forex Inc.
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.
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