Taiwan government bonds fall after the Fed Thursday announced an open-ended bond purchase program and plans to extend low interest rates to 2015, says a local trader. "The QE3 from the Fed and the German court's approval of the eurozone's new rescue fund are all weighing on safe-haven assets...the local bond market will likely stay bearish over the next one to two months," he says. The most-traded 10-year government bond yield is at 1.1895%, off its intraday high of 1.1942%, vs 1.1855% late Thursday in Taipei; the trader tips the yield in a 1.1850%-1.2000% band for the session. He adds, buying from major bond investors will likely increase if the yield rises above 1.2000%. The five-year bond yield is at 0.8990% vs 0.8970% Thursday. The Taiex is up 1.4%.
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