Hong Kong Monetary Authority Reveals Results of 15-Year Bond Tender
By: bitcoin ethereum news|2025/05/15 18:45:05
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James Ding May 14, 2025 02:31 The Hong Kong Monetary Authority announced the results of a 15-year HKD institutional government bond tender, with a bid-to-cover ratio of 5.15 and an annualized yield of 3.414%. The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government (HKSAR Government), has announced the results of the tender for the re-opening of 15-year institutional government bonds. The tender, which was part of the Infrastructure Bond Programme, was conducted on May 14, 2025, according to the Hong Kong Monetary Authority. Details of the Tender The re-opened issue, numbered 15GB3912001, involved the offering of HK$0.5 billion in 15-year government bonds. The tender received applications totaling HK$2.575 billion, resulting in a bid-to-cover ratio of 5.15. The bonds were accepted at an average price of 104.16, translating to an annualized yield of 3.414%. Bond Specifications The bonds, bearing the stock code 4287 (HKGB 3.75 3912), are set to be issued and settled on May 15, 2025, with a maturity date of December 5, 2039. These bonds have a coupon rate of 3.75%. Market Response and Analysis The strong demand for the bonds, as indicated by the high bid-to-cover ratio, reflects investor confidence in the long-term stability and creditworthiness of the HKSAR Government. The lowest price accepted was 103.30, yielding 3.489%, while the average tender price was 102.19, yielding 3.587%. The pro-rata ratio was approximately 60%. These results are significant in the context of Hong Kong’s financial market, showcasing the region’s ability to attract substantial investment in its government securities. The successful tender underscores the HKSAR Government’s robust fiscal framework and its appeal to institutional investors. The HKMA’s role in managing such tenders is crucial for maintaining the financial stability and liquidity of Hong Kong’s bond market, ensuring that government borrowing needs are met efficiently. Image source: Shutterstock Source: https://blockchain.news/news/hong-kong-monetary-authority-15-year-bond-tender-results
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