jack anderson
November 15, 2024 00:03
The HKMA announced the results of the two-year RMB government bond bidding, with a bid ratio of 5.41 and an annual yield of 2.062%.
The Hong Kong Monetary Authority (HKMA), on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), recently announced the results of the two-year RMB agency bond bidding results. The tender, part of the Infrastructure Bond Program, was held on November 14, 2024 and offered a total of 1 billion yuan worth of bonds, according to the Hong Kong Monetary Authority.
High demand for government bonds
The tender attracted significant interest with applications received amounting to 5.49 billion yuan, resulting in a strong bid-to-cover ratio of 5.41. This ratio means that demand for these bonds is high, as the application amount is more than five times the issuance amount. The bonds were issued under stock code 84585 (HKGB2.04 2611-R) and have a maturity date of November 18, 2026.
Yield and price details
The average acceptable price for the bond is 99.98, which corresponds to an annual yield of 2.062%. The lowest price allowed was 99.82 and the yield was 2.144%. The pro rata ratio was approximately 62%, highlighting the competitive nature of the bidding process. The average bid was recorded at 99.64, corresponding to a return of 2.240%.
Bonding characteristics
The notes have a coupon rate of 2.04% and are scheduled to be issued and settled on November 18, 2024. This bond is part of the HKSAR government’s ongoing efforts to develop the RMB bond market and provide more investment options for institutional investors.
HKMA’s successful bond issuance highlights continued confidence in Hong Kong’s financial stability and the attractiveness of renminbi-denominated assets amid global economic uncertainty.
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