Jan. 9 (Bloomberg) -- Taiwan’s government bonds gained on concern Europe’s debt crisis is worsening after Spanish borrowing costs rose the most in almost 17 years last week. The local dollar strengthened.
The Taiex index of shares fell before German Chancellor Angela Merkel and French President Nicolas Sarkozy meet today to craft a master plan for rescuing the euro over the next three months. Taiwan will vote for a new president on Jan. 14, with Tsai Ing-wen, chairwoman of the opposition Democratic Progressive Party, contesting against President Ma Ying-jeou.
“Yields are down a bit today because of European debt concerns, but you can see Taiwan’s markets aren’t reacting as much as other markets like South Korea,” said Albert Lee , a Taipei-based fixed-income trader at Cathay United Bank Co. “Traders are going to stay put before the election, which could turn out to be a close race.”
The yield on the 1 percent notes due January 2017, the most-traded government securities, fell two basis points, or 0.02 percentage point, to 0.98 percent, prices from Gretai Securities Market show.
The island’s dollar rose 0.1 percent to NT$30.205 against its U.S. counterpart, according to Taipei Forex Inc. It climbed 0.2 percent last week, a third weekly advance.
Exports gained 0.6 percent from a year earlier in December, less than the 3.7 percent growth economists predicted in a Bloomberg survey, the government reported toward the end of currency trading today.
The overnight money-market rate, which measures interbank funding availability, was 0.4 percent, little changed from last week, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: James Regan, Ven Ram
To contact the reporter on this story: Andrea Wong in Taipei at email@example.com
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org