Jan. 13 (Bloomberg) -- Taiwan’s government bonds and the local dollar were headed for weekly gains on speculation President Ma Ying-jeou, who has improved economic ties with China, will be re-elected tomorrow.
Benchmark five-year yields were poised for the biggest decline since the week ended Dec. 2. Global funds bought $594 million more Taiwanese stocks than they sold in the last four days, according to exchange data. Tsai Ing-Wen, chairwoman of the opposition Democratic Progressive Party, is running against President Ma of the Kuomintang party.
“Investors are optimistic things won’t change too much no matter who wins,” said Henry Lin, a Taipei-based foreign- exchange trader at Taiwan Shin Kong Commercial Bank.
The Taiwan dollar advanced 1 percent this week to NT$29.952 against its U.S. counterpart as of 9:52 a.m. local time, the biggest gain in six weeks, according to Taipei Forex Inc. It rose 0.2 percent today and reached NT$29.880 yesterday, the strongest level since Nov. 1.
The yield on the 1 percent notes due January 2017 fell three basis point, or 0.03 percentage point, this week to 0.964 percent, prices from Gretai Securities Market show. The rate increased one basis point today.
The overnight money-market rate, which measures interbank funding availability, was unchanged this week and today at 0.401 percent, according to a weighted average compiled by the Taiwan Interbank Money Center.
--Editors: Andrew Janes, Simon Harvey
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