Taiwan Swaps Signal Rate Hike Bets on Inflation, Currency Risks

Fixed-income investors are pricing in an interest-rate hike in Taiwan in the coming months as surging oil prices and a weakening currency spark inflation concerns.

Taiwan’s one-year interest-rate swaps climbed to the highest level on record last week, according to Bloomberg-compiled data, signaling expectations of at least one rate hike over the next 12 months. Before the Iran war started, the probability of such a move was less than 50%.