Taiwan Five-Year Yields at Highest Since 2008 on Cash, Rate View

Taiwan’s five-year government bond yields rose to their highest level since 2008 as tighter banking-system liquidity and rising expectations for higher interest rates reduced demand for local debt. The move points to a more hawkish rates backdrop and weaker sentiment for sovereign bonds. Impact is notable for the Taiwan rates market but limited outside local fixed income.

Analysis

Taiwan’s five-year government bond yields rose to their highest level since 2008 as tighter banking-system liquidity and rising expectations for higher interest rates reduced demand for local debt. The move points to a more hawkish rates backdrop and weaker sentiment for sovereign bonds. Impact is notable for the Taiwan rates market but limited outside local fixed income.