Taiwan Traders Rethink Rate Hike Path as Central Bank Hits Back
- Interest-rate swaps decline by the most since December
- Central bank hints it may not hike interest rate in June
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Taiwan swaps traders are quickly dialing back bets on a sustained increase in policy rates, after the island’s central bank chief signaled that last week’s hike was a one-off.
One-year interest-rate swaps on the Taiwan dollar, a measure of traders’ expectations for funding costs, slipped by the most in over three months on Wednesday, according to data compiled by Bloomberg. That’s a sign investors are paring their bets that liquidity will tighten.