Reported 8 months ago
The 10-year bonds auctioned by the central bank on June 18th saw a slight decrease in the highest yield to 1.675%. Only banks and sporadic securities companies bid for it, as insurance companies turned to subordinated bonds. The market remains conservative due to uncertainties about a potential interest rate hike in the third quarter by the central bank. The insurance industry plans to issue a record-high of NT$158 billion worth of subordinated bonds this year, with attractive yields around 3.7%-3.75%. Banks continue to invest in 10-year bonds, while securities and insurance industries show reduced interest, and the ticket industry finds shorter-term bonds more appealing. Insurance companies focus mainly on long-term bonds over 20 years.
Source: YAHOO