Dec. 28 (Bloomberg) -- Taiwan’s government bonds and currency were little changed before the central bank reviews borrowing costs tomorrow.
The monetary authority will leave its benchmark rate unchanged at 1.875 percent, according to 11 of 15 economists in a Bloomberg survey. Four predict a cut to 1.750 percent.
“Market participants are all waiting for the rate decision,” said Tarsicio Tong, a trader at Union Bank of Taiwan in Taipei. “Currency trades recently are mostly driven by exporters and importers.”
The yield on the 1.25 percent notes maturing in September 2021, the most-traded government securities, was little changed at 1.27 percent, according to prices from Gretai Securities Market. Benchmark 10-year rates have dropped 28 basis points, or 0.28 percentage point, this year.
Taiwan’s dollar was little changed at NT$30.306 against its U.S. counterpart, according to Taipei Forex Inc. It has advanced 0.2 percent in 2011. “There won’t be too much movement in the currency” until the island’s presidential elections are held on Jan. 14, Tong said.
The overnight money-market rate, which measures interbank funding availability, was steady at 0.4 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Ven Ram, Sandy Hendry
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