Taiwan Bond Yields at Record Low as Overnight Rate Said Reduced
- Move spurs speculation the policy rate will be cut in March
- Money-market rates had risen because of the upcoming holiday
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Taiwan’s government bond yields tumbled to a record after the central bank was said to have lowered the overnight guiding rate, adding to expectations it will cut the benchmark rate when it next meets in March.
The monetary authority reduced the rate on overnight funds to 0.2 percent from 0.23 percent, according to people familiar with the matter. A report showed Friday the economy shrank in the fourth quarter as exports slumped, adding to the urgency of further easing. Money-market rates also climbed in the past week as demand for cash rose before the Lunar New Year holiday beginning Feb. 8.