Oct. 3 (Bloomberg) -- Taiwan’s dollar fell to the lowest level in 10 months and government bonds advanced on further signs the world economic recovery is faltering.
The currency added to last week’s losses after overseas investors sold $2.6 billion more Taiwanese equities than they bought in September, a fifth month of net sales. Asian stocks declined after reports on Sept. 30 showed growth in U.S. consumer spending slowed in August, while incomes unexpectedly dropped for the first time in almost two years.
“People shifted money to government bonds today because of the bad performances in stocks,” said Ivy Leung, a Taipei-based fixed-income trader at Polaris Securities Co. “The outlook for bonds highly depends on the global economy.”
Taiwan’s dollar retreated 0.3 percent to NT$30.587 against its U.S. counterpart as of the 4 p.m. local close, according to Taipei Forex Inc. It dropped to NT$30.672 earlier, the weakest level since December.
The yield on the 1.25 percent notes due September 2021, the most-traded government securities, fell one basis point, or 0.01 percentage point, to 1.264 percent, prices from Gretai Securities Market show. That’s the lowest level for benchmark 10-year rates in five days.
The overnight money-market rate, which measures interbank funding availability, was little changed at 0.397 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Simon Harvey, Anil Varma
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