Zach Anderson
Nov 15, 2024 00:03
The HKMA introduced the outcomes of a 2-year RMB Authorities Bond tender, revealing a bid-to-cover ratio of 5.41 and an annualized yield of two.062%.
The Hong Kong Financial Authority (HKMA), performing on behalf of the Hong Kong Particular Administrative Area Authorities (HKSAR Authorities), has introduced the outcomes of the latest tender for 2-year RMB institutional Authorities Bonds. The tender, a part of the Infrastructure Bond Programme, was performed on November 14, 2024, providing a complete of RMB1.0 billion in bonds, in response to the Hong Kong Financial Authority.
Excessive Demand for Authorities Bonds
The tender attracted vital curiosity, with RMB5.409 billion in purposes acquired, leading to a strong bid-to-cover ratio of 5.41. This ratio signifies the robust demand for these bonds, as the quantity utilized for was over 5 instances the quantity issued. The bonds had been issued underneath the inventory code 84585 (HKGB2.04 2611-R) and are set to mature on November 18, 2026.
Yield and Pricing Particulars
The typical value accepted for the bonds was 99.98, which corresponds to an annualized yield of two.062%. The bottom value accepted was 99.82, yielding 2.144%. The professional-rata allocation ratio stood at roughly 62%, highlighting the aggressive nature of the tender course of. The typical tender value was recorded at 99.64, equating to a yield of two.240%.
Bond Traits
The bonds carry a coupon fee of two.04% and are set to be issued and settled on November 18, 2024. These bonds are a part of the HKSAR Authorities’s ongoing efforts to develop the RMB bond market and supply institutional buyers with extra funding choices.
The HKMA’s profitable bond issuance underscores the continued confidence in Hong Kong’s monetary stability and the attraction of RMB-denominated belongings amidst world financial uncertainties.
Picture supply: Shutterstock
