HKMA Reports Strong Demand in 15-Year Institutional Government Bond Tender

The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has disclosed the results of a recent tender for its 15-year HKD institutional government bonds. According to the HKMA, the tender held on December 4, 2024, was part of the Infrastructure Bond Programme.

High Demand and Competitive Yield

The tender saw significant interest, with applications amounting to HK$2.264 billion, far exceeding the HK$0.5 billion in bonds offered. This resulted in a bid-to-cover ratio of 4.53, indicating robust demand from institutional investors. The average accepted price stood at 101.79, yielding an annualized interest rate of 3.627%.

Tender Details

Designated as issue number 15GB3912001, these bonds will settle on December 5, 2024, and mature on December 5, 2039. The bonds carry a coupon rate of 3.75%, and the stock code for these bonds is 4287 (HKGB 3.75 3912). The lowest price accepted was 101.30, with a corresponding yield of 3.670%, while the average tender price was 98.94, translating to a yield of 3.881%.

Market Implications

The strong response to the bond issuance is indicative of investor confidence in Hong Kong’s financial stability and the attractiveness of its government securities. The bonds’ competitive yield also reflects the market’s expectations for future interest rate movements and economic conditions.

For more information on the tender results and bond details, please visit the Hong Kong Monetary Authority.

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