2012.05.28 04:46:23 MARKET TALK: Taiwan Govt Bonds Tad Lower; 5-Yr Yield Cap At 0.9750%

0246 GMT [Dow Jones] Taiwan government bonds are slightly lower in thin volume amid a lack of fresh trading cues, says a local trader. He notes that many market participants are maintaining a cautious stance, carefully monitoring the financial situation in Europe. "Although Taiwan's government on Friday trimmed its economic growth forecasts for the fourth time this year, the market remains unsure whether the central bank will ease monetary policy later this year," he adds. The most-traded five-year bond yield is quoted at 0.9665% vs 0.9648% at Friday's close; he tips the yield to trade in a 0.9550%-0.9750% band for the session. The 10-year bond yield is flat at 1.2690%. (fanny.liu@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 27, 2012 22:46 ET (02:46 GMT)