Halister News

(Bloomberg) -- Taiwan dollar closes at its strongest level since Sept. 8 as investors bought up shares of Apple suppliers.

• TWD rises 0.2% to close at 31.33 per dollar,
• Foreign investors net buy TWD4.8b ($151.7m) Taiwan stocks; Taiex index gains for fifth day
• CBC will probably cut discount rate at policy meeting next week to weaken TWD, revive inflation and lift growth, given the lack of fiscal stimulus and near-term reform, BNP Paribas economist Mole Hau writes in note today
  • TWD REER has jumped by more than 10% annualized over the past three months
  • Momentum of tech shipments may not last beyond cyclical smartphone-driven recovery; China’s structural industrial slowdown remains a significant headwind
  • Cut could boost confidence and weakens TWD, while material difference to onshore borrowing conditions unlikely
• Taiwan government to issue TWD145b of bonds in 4Q, vs TWD125b for the same period last yr and TWD120b in 3Q
• Absence of significant pickup in govt bond supply in 4Q indicates Ministry of Finance is conservative, says Jih Sun Securities bond trader Kevin Shih
• Says market has largely priced in expectation of no rate cut, with Aug export orders better than expected
  • If CBC cut rates, it would be the last time for this cycle and won’t drive 10-yr govt bond yield to new low
  • Expects yield of 10-yr note to trade within 0.69% - 0.74% next week, ahead of policy meeting on Thursday
• Yield of 10-yr govt note little changed at 0.719% today, declining 3 bps this week