Cash Squeeze Set to Lift Taiwan’s Yields Further, Analysts Say

Taiwan's bond yields are set to climb further as tight cash conditions, driven by seasonal tax payments and rising loan demand from brokerages fueling the AI-driven stock rally, are dampening demand for government debt. The five-year yield is near its highest since 2008, while the central bank's outstanding CD balance has fallen to its lowest since June 2010. Traders await the Taiwanese central bank's policy decision on Thursday, with rates expected to be held at 2% but with attention on whether the tone turns hawkish after May inflation crossed the alert level.