HALISTER1: INSIDE TAIWAN: Yield on 20-yr Govt Note Hits New Low; TWD Slips

INSIDE TAIWAN: Yield on 20-yr Govt Note Hits New Low; TWD Slips

(Bloomberg) -- Long-end of Taiwan govt bond curve rises after sentiment boosted by record-low yield of 20-yr note.
  • Yield of 20-yr Taiwan govt bond edges down 0.25 bp to record low at 1.21%
    • Yield of 10-yr note closes 1 bp higher at 0.674% after rising as much as 1.85 bps to 0.682% earlier
  • Sentiment at long-end of the yield curve is boosted by a record-low yield of 10-yr govt note yday, says Tobby Lin, deputy manager of fixed income at Yuanta Sec Invest Consulting
    • Demand is high for fixed income assets but further yield decline of 10-yr note would be slower given it’s already in record-low territory and investors less willing to buy at higher prices
    • Expects yield of 10-yr note to trade within 0.65%-0.69% this week; yield of 5-yr within 0.47%-0.5% range
  • CBC raises overnight guiding rate to 0.179%, people with knowledge of the matter say
  • Taiwan to sell NT$30b ($932m) of 20-yr bonds on Thursday
  • TWD falls 0.02% to 32.220 per dollar, echoing weakness in KRW and JPY today
  • Overseas investors buy local stocks for third consecutive day, net investing NT$12.5b ($388.2m) today; Taiex index advances 0.6% to close at 8,841.46
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Tobby Lin (Yuanta Securities Co Ltd)

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