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 carried out on November 14, 2024, providing a complete of RMB1.0 billion in bonds, based on the Hong Kong Financial Authority.
Excessive Demand for Authorities Bonds
The tender attracted important curiosity, with RMB5.409 billion in purposes acquired, leading to a sturdy 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 worth accepted for the bonds was 99.98, which corresponds to an annualized yield of two.062%. The bottom worth 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 worth was recorded at 99.64, equating to a yield of two.240%.
Bond Traits
The bonds carry a coupon charge 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 traders with extra funding choices.
The HKMA’s profitable bond issuance underscores the continued confidence in Hong Kong’s monetary stability and the enchantment of RMB-denominated belongings amidst international financial uncertainties.
Picture supply: Shutterstock