Taiwan Adding to Easing Spurs Record-Low Five-Year Bond Yield
- Reserves, trade surplus a buffer to Fed: central bank governor
- Currency weakens to two-month low after rate cut on Thursday
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Taiwan’s five-year government bond yield fell to a record as bonds extended a rally following the central bank’s interest-rate cut.
Governor Perng Fai-nan said on Thursday after lowering benchmark borrowing costs for a second straight quarter that Taiwan is insulated from the monetary-policy divergence with the U.S. by its current-account surplus, ample foreign-exchange reserves and attractive equity valuations. The Federal Reserve raised rates this week for the first time in almost a decade, removing an uncertainty that’s spurred capital outflows from emerging markets.