Taiwan’s dollar strengthened for a third week as the island’s shares rallied to a 21-month high. Government bonds rose after economic growth trailed estimates.
Taiwan’s dollar rose to a six-week high as foreign funds turned net buyers of the island’s stocks. Government bonds gained on concern a bird flu outbreak will hurt the economy.
The yield on Taiwan’s five-year bonds dropped by the most this week since July amid concern regional economic weakness will hurt the island’s exports. The local currency strengthened.
The yield on Taiwan’s 20-year bonds climbed to the highest level in 17 months after demand dwindled at an auction. The local currency gained.
Albert Lee, a Taipei-based fixed- income trader at Cathay United Bank Co., comments on Taiwan’s bond market in a phone interview today.
Taiwan’s bonds fell, pushing the 10-year yield to the highest level in almost a week, on speculation investors are shifting to U.S. dollar assets. The local currency weakened.
Taiwan’s government bonds reversed earlier gains on speculation investors reduced their holdings before an auction next week. The local dollar gained.
Taiwan’s 10-year bonds fell for a third day, the longest losing streak in a month, as more data suggesting the U.S. economy is improving encouraged risk-taking and damped demand for government debt.
Taiwan’s government bonds were poised for a weekly drop, with benchmark 10-year yields rising the most in almost five months, after the government announced plans to boost issuance of the securities.
Warren Buffett and Bill and Melinda Gates’s initiative to get billionaires to pledge at least half their wealth to charity signed on 11 new families who support causes from science museums to access to marijuana.
"There seems to be a divergence in sentiment for bond and stock investors."
- Albert Lee on May 02, 2013