Hong Kong Monetary Authority Reports Tender Results for 1-Year HONIA-Indexed Floating Rate Notes

The Hong Kong Monetary Authority (HKMA), representing the Hong Kong Special Administrative Region Government (HKSAR Government), has disclosed the results of the tender for 1-year HONIA-indexed Floating Rate Notes, according to the official source.

Tender Results Overview

The tender, part of the Institutional Bond Issuance Programme, saw a total allocation of HK$1.5 billion in 1-year HONIA-indexed Floating Rate Notes (issue number 01GH2508). The HKMA reported receiving HK$6.840 billion in tender applications, resulting in a bid-to-cover ratio of 4.56. The highest spread accepted was 0.22%.

Details of the Issuance

* Calculated as the amount of notes applied for over the amount of notes issued.

Market Implications

The successful tender of the 1-year HONIA-indexed Floating Rate Notes indicates strong demand for Hong Kong government bonds. With a bid-to-cover ratio of 4.56, the market’s appetite for secure, government-backed financial instruments remains robust.

This issuance aligns with the HKMA’s ongoing efforts to maintain a stable financial environment and provide diverse investment opportunities. The accepted average spread of 0.17% highlights investor confidence in the stability and creditworthiness of the HKSAR Government.

The HKMA continues to play a crucial role in managing Hong Kong’s monetary policy and financial stability, and the results of this tender further underscore the institution’s effectiveness in these areas.

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