Both the domestic and foreign bond markets went bullish in the month of November. Although the U.S. bond market was surrounded by the potentially bearish atmosphere that the new rescue plan would increase the issuance of treasury bonds, money still swarmed into the treasury market as poor corporate performances and weak economic figures in the U.S. and European countries signaled a global recession and the stock markets continued the plunge. The yield of 10-year treasury notes closed at 3.54% on 11/18, off 43bp from the end of October. Domestically, as the Central Bank suddenly lowered the rediscount rate and unexpectedly the NCD subscription rate at the same time to lead the reduction of interest rates, the market held a pessimistic view towards the future, and the international bond markets went strong, the yield of 10-year bonds skidded all the way to close at 1.65% on 11/18, down 33bp from the end of the October.

The 5-year, 10-year, and 20-year benchmark bond yield, and Taiwan government bond index was around 1.3738%, 1.4973%, 1.9185%, and 1017.91 points at the end of November. The daily turnover in the bond market averaged NT$321.86 billion for the month. The daily average of outright trade amounted to NT$86.30 billion (26.81%) and that of RP/RS trade was NT$235.56 billion (73.19%). The market turnover fell 15.02% from October (the daily market turnover in October month averaged 344.3 billion; it amounted to NT$83.06 billion for outright trade and NT$261.24 billion for RP/RS trade).