TAIPEI, July 29 (Reuters) - Taiwan’s central bank said on Tuesday it will auction T$20 billion ($666 million) in two-year negotiable certificate of deposits (NCD), more than doubled the original amount, to “meet asset allocation needs from financial institutions.”
The auction amount on Aug. 8 will double from T$10 billion planned earlier, while the 364-day NCD remains as T$120 billion, the central bank said in a statement, without elaborating.
Some analysts see the move as paving the way for the central bank to raise interest rates.
NCDs are bought most often by large institutional investors, who often use them as a way to invest in a low-risk, low-interest security. (Reporting by Jeanny Kao; Writing by Faith Hung; Editing by Jacqueline Wong)