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20-Year Bond Sale Could Set Record Low Yield

TAIWAN

The Taiwan finance ministry will sell TWD35bn 20-year bonds today, results due at 0430GMT/1230CST.

  • The previous 20-year auction was held on September 15, the issue drew a record low yield of 0.509% with a bid/cover of 2.16. The auction size was slightly smaller at TWD 30bn. A Bloomberg survey estimates today's sale will see a new record low yield of 0.399%.
  • The finance ministry announced yesterday plans for bond issuance in 2021; Taiwan plans 19 bond sales in 2021, 1 more than 2020.
  • The nominal amount of debt sales may be larger in 2021 in order to finance the special budget, according to the ministry.
  • Taiwan plans TWD 160bn of sales from 5 issues in Q1, around TWD 10bn higher than the same period in 2020. Approximately TWD 170bn of bonds will roll off in Q1 2021.

Breakdown:

  • 2-Year: 1 sale
  • 5-year: 4 sales
  • 7-year special: 1 sale (first sale of special bonds since 2013)
  • 10-year: 7 sales
  • 20-year: 4 sales
  • 30-year: 2 sales

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