TAIPEI (Bloomberg) Taiwan's government bonds rose on speculation a slide in local stocks prompted investors to seek the safety of debt. The currency weakened.

Ten-year yields fell to a three-week low on concern defaults on US subprime mortgages are spreading and will slow the global economy.

Regional equity markets declined, with the island's Taiex index of shares dropping as much as 2.2 percent.

"The bond market is helped by the global stock crisis," said Eric Hsing, a bond trader at First Taisec Securities Inc. in Taipei.

"Traders are entering the bond market on the belief debt will keep gaining over the short term."

The yield on the benchmark 1 ⅞ percent bond due March 2017 fell 4.6 basis points to 2.513 percent as of the 1:30 p.m. close in Taipei, according to Gretai Securities Market, Taiwan's biggest exchange for bonds.

The price rose 0.379, or NT$379 per NT$100,000 face amount, to 94.6125. A basis point is 0.01 percentage point.

The Taiwan dollar fell 0.1 percent to NT$32.888 at 4 p.m. local time, according to Taipei Forex Inc.

The currency gained 1.2 percent in the past three months.

The Canada TSX market report which normally appears here was not available as the TSX was closed for trading yesterday.