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20-year government bond yield rises

2012/04/24 21:19:07

Taipei, April 24 (CNA) Taiwan's 20-year government bond yield rose Tuesday amid wide expectations of interest rate hikes.

The Ministry of Finance commissioned the Central Bank of the Republic of China to auction nearly NT$40 billion in 20-year government bonds, with the yield rising to 1.725 percent, from 1.708 percent in the previous auction of 20-year government bonds in mid-March.

Analysts said that with inflationary pressure rising, the market expects the interest and currency rates to both increase gradually, which has resulted in the rise of the yield on 20-year government bonds that will mature Jan. 20, 2032.

The government bond issue totaled NT$39.99 billion Tuesday, drawing NT$56.65 billion-worth of funds bidding from investors.

Banks accounted for 37 percent of Tuesday's winning bidders and insurance companies, 38.38 percent.

(By Kao Chao-fen and Lilian Wu)