Monday, June 11, 2007

Taiwan's Bonds to Drop, Pushing Yield to Three-Year High, Taiwan Life Says

(Bloomberg) -- Taiwan's government bonds may slump,
pushing yields to the highest since 2004, after traders placed
record bets against the debt, Taiwan Life Insurance Co. said.

Short sales reached a daily average of NT$37.8 billion
($1.1 billion) last week, the highest since records began in
March 2005, according to Huang Bing Jing, senior vice president
at Gretai Securities Market, which runs the nation's biggest
debt exchange. A short position is where an investor borrows an
asset in anticipation of making a profit by buying it back after
its price has fallen.


Read more at Bloomberg Bonds News

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