Rebeca Moen
March 5, 2025 02:07
Hong Kong Monetary Authority reported a successful bidding for the resumption of government bonds for five years and reported the ratio of 6.25 bidding.
The Hong Kong Monetary Authority (HKMA), which represents the Hong Kong Special Administrative Regional Government, has announced the results of bidding for the resumption of government bonds in Hong Kong dollar (HKD) in the last five years. According to the Hong Kong monetary authorities, the bidding held on March 5, 2025 attracted much attention from investors.
Strong demand for bonds
A total of $ 1.5 billion was provided, and the bidding application was quite 93.7 billion Hong Kong. This causes a bid rate of 6.25 to show strong demand between institutional investors. The allowable average price is 99.80, which is a return of 3.301%per year.
Major details of bond issues
The bonds identified as the problem number 05GB2912001 were reopened according to the infrastructure bond program. They have a coupon ratio of 3.23%and are expected to mature on December 5, 2029. The problem and payment date will be displayed on March 6, 2025.
The bid also increased 3.360%by emphasizing the minimum price approved at 99.55, with a high proportion of 51%. The average bid price was 99.33, which was 3.412%.
Implications and market contexts
This high level of interest in HKD bonds reflects stable investor trust in Hong Kong’s economic outlook and government’s fiscal policy. Resumption of this bond problem is part of a wide range of strategies that support infrastructure development and manage public debt efficiently.
Globally, the debt market was closely monitored due to the change in the economic recovery after the interest rate fluctuations and the aversion. HKMA’s successful issuance suggests positive feelings about Hong Kong’s financial health and strategic finance initiatives.
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