A poor 20-year bond sale and rising expectations of central bank rate hikes pushed shorter-dated government borrowing costs higher.
Taiwan's 5-year bond yield climbed to its highest level since 2008 as weak demand in the government debt market rippled across maturities. The move followed a poor 20-year bond auction and came as investors increasingly bet the central bank may raise interest rates, a combination that pressured bond prices and lifted yields. Higher yields typically reflect falling bond prices and tighter expectations for future financing conditions.