Financial markets hit by war, banks increase stock and bond holdings despite volatility

Central News Agency, Taipei, May 24. The US-Iran conflict broke out at the end of February, causing increased volatility in financial markets in March. With rising US Treasury yields, bond valuations have seen unrealized losses. However, the banking sector adopted a contrarian strategy in March, increasing bond holdings by NT$184.4 billion and stocks by NT$39.8 billion. According to the Financial Supervisory Commission, as of the end of March, the total investment balance of the three major financial sectors in domestic and foreign stocks reached NT$4.328 trillion, with bond positions at NT$31.8254 trillion. The banking sector's unrealized bond losses increased to NT$105.1 billion. Meanwhile, the proprietary trading departments of securities firms reduced their bond holdings by NT$18.184 billion and Taiwan stocks by NT$22.176 billion.