Taiwan’s government bonds and the local dollar were little changed before the central bank meets tomorrow to discuss borrowing costs.
Policy makers will leave the discount rate on 10-day loans unchanged at 1.875 percent, according to all 11 economists in a Bloomberg survey. The island’s export orders rose 17.6 percent last month from a year earlier after slumping 8.63 percent in January, government data showed yesterday.
“The rate meeting is keeping traders on the sidelines,” said Ivy Leung, a Taipei-based bond trader at Polaris Securities Co. “The good export numbers show the economy should be steadily gaining steam.”
The yield on the government’s 1.25 percent bonds due March 2022 was steady at 1.295 percent, according to Gretai Securities Market. It reached 1.30 percent on March 15, the highest level for a benchmark 10-year note since Jan. 6, according to data compiled by Bloomberg.
The Ministry of Finance will release its second-quarter debt-auction plan on March 23.
Taiwan’s dollar weakened 0.06 percent to NT$29.576 against its U.S. counterpart, according to Taipei Forex Inc. One-month implied volatility, a measure of exchange-rate swings that traders use to price options, was little changed at 4.5 percent.
The overnight money-market rate was steady at 0.398 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
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