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Bonds fall, NT dollar rises

Taiwanese 10-year government bonds fell for a third day after the government said it would increase debt sales. The currency rose for a fourth day.

The Ministry of Finance will issue NT$130 billion (US$3.9 billion) in bonds in the fourth quarter, it said in statement last Friday. The government sold NT$105 billion of debt during the fourth quarter last year.

The yield on the benchmark bond due September 2017 rose 11.2 basis points to 2.602 percent on the GRETAI Securities Market. Its price fell NT$0.9666 to NT$98.0230.

The New Taiwan dollar rose for the fourth day, closing NT$0.026 higher at NT$32.927 against the US currency, according to Taipei Forex Inc. Turnover was US$1.089 billion.

Chang Hwa to raise rates

Chang Hwa Commercial Bank (彰化銀行) announced yesterday that it would raise interest rates, effective today, after the central bank raised its benchmark interest rates last week and the Bank of Taiwan (臺灣銀行) increased its interest rates on both time deposits and time savings deposits yesterday.

Chang Hwa will increase its interest rate on time deposits by a range between 0.06 and 0.08 percentage points, and on time savings deposits by a range between 0.07 and 0.08 percentage points, it said in a statement posted on its Web site.

TSMC ordered to pay damages

The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday that a California court had ordered it to pay US-based UniRAM Technology Inc US$30.5 million over its misuse of trade secrets.

The world's largest contract chipmaker, in response, claimed the court ruling was "in error."

"TSMC has always held itself to the highest standards of respect for intellectual property and believes that this verdict is in error," Dick Thurston, TSMC's vice-president and general counsel, said in a statement. "We intend to pursue all defenses vigorously."

UniRAM alleged in its lawsuit that TSMC had misappropriated its trade secrets regarding the design of specialized computer memory devices known as "embedded DRAM," a statement from the law firm that represented the US firm said.

Taipower auctions debt

Taiwan Power Co (Taipower, 台電), the nation's biggest electricity producer, auctioned NT$10.69 billion in five-year secured bonds to help fund the construction of power plants and upgrade its grids.

The debt, guaranteed by Taipei Fubon Bank (台北富邦銀行), will pay annual interest of 2.7 percent, said Sam Lou, a section chief at the company's finance department. That compares with the 2.521 percent yield on the benchmark five-year government bond yesterday.

"This is an interest rate we can accept," Lou said by telephone from the Taipei-based company's headquarters yesterday.

The auction brings Taipower's total debt sales this year to NT$25.69 billion.

Chinese mortgages to cost more

China's central bank is expected to increase its mortgage interest rate to 110 percent of its benchmark one-year lending rate this week to curb the property market, state media reported yesterday.

If the rise goes ahead, the interest rate for a five-year mortgage could be as high as 8.613 percent, the China Daily reported, quoting unnamed sources.

The current five-year lending rate reached 7.83 percent after the People's Bank of China raised interest rates for the fifth time this year on Sept. 13.


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