Bond yield climbs to 1.25%
The yield on 10-year government bonds rose to a three-week high on concern an increase in electricity prices next month will stoke inflation.
Inflation reached 1.44 percent last month, compared with 1.21 percent in March, official data show.
The yield on the 1.25 percent note due March 2022 climbed 1.5 basis points to close at 1.25 percent, according to GRETAI Securities Market, the highest level since May 4.
Government bonds have returned 0.97 percent this year, the third-worst performance among 10 Asian markets tracked in an HSBC Holdings PLC index. The securities rose 0.29 percent this month.
NT dollar inches up
The New Taiwan dollar rose against the US dollar yesterday, adding NT$0.005 to close at NT$29.645. One-month implied volatility, a measure of exchange-rate swings that traders use to price options, dropped five basis points, or 0.05 percentage points, to 5.59 percent.
Turnover totaled US$782 million during the trading session.
Fitch affirms banks’ IDRs
Fitch Ratings said on Monday it had affirmed five Taiwanese state banks’ long-term foreign-currency issuer default ratings (IDR) and support rating floors, reflecting expectations of continued strong state support. The international ratings agency said it had also affirmed another state bank’s national ratings and support rating.
The six banks are Bank of Taiwan (臺灣銀行), Taiwan Cooperative Bank (合作金庫銀行), Mega International Commercial Bank (兆豐國際商銀), First Commercial Bank (第一商業銀行), Hua Nan Commercial Bank (華南商業銀行) and Chang Hwa Bank (彰化銀行).
The high probability of state support is driven by their systematic importance, relationship with the state and policy role, Fitch said in a statement. Together, they accounted for about 51 percent of system assets at the end of last year, it added.
NDF approves film investment
The government’s National Development Fund (NDF) approved on Monday an investment of US$21 million in East Grand Films, a Taiwanese subsidiary of US-based Rhythm & Hues Studios, in a bid to help visual-effects technology take root in the country.
East Grand Films, a film investment firm, will also invest at least US$21 million in Taiwan to help domestic manufacturers take part in the production of special effects for US films, according to the fund.
Rhythm & Hues Studios will also set up its visual effects studio in Greater Kaohsiung and partner with Chunghwa Telecom Co (中華電信) and Quanta Computer Inc (廣達電腦) to create a cloud-computing center for the animation and visual effects communities.
Director Ang Lee (李安) introduced Rhythm & Hues to the Ministry of Economic Affairs. He is working with the studio on his adaptation of the novel Life of Pi.
Cross-strait trade plummets
Bilateral trade fell sharply in the first four months of the year from a year earlier, according to figures released by China on Monday.
Bilateral trade totaled US$47.64 billion from January to last month, down 8.2 percent from the same period last year, the Chinese Ministry of Commerce said.
Taiwan’s imports from China totaled US$10.23 billion during the period, down 10.3 percent from the year before, and exports to China totaled US$37.41 billion, representing an annual decline of 7.7 percent, the statistics showed.
Last month alone, cross-strait trade totaled US$12.52 billion, down 9.4 percent month-on-month. Exports to China dropped by 10.5 percent from March to US$9.66 billion, while Taiwan’s imports fell 5.6 percent to US$2.86 billion, data showed.