On Thursday, Nov. 12, the Hong Kong Monetary Authority (HKMA) reopened a 10-year renminbi institutional government bond, drawing applications 3.56 times the offer, a lower ratio than in July.
The HKMA acted for the Hong Kong Special Administrative Region government and allocated RMB1.5 billion after applications reached RMB5.335 billion. The bid-to-cover ratio compares the value of applications with the amount offered.
Official results for the same issue’s July 23 reopening show applications of RMB10.810 billion against an RMB1.25 billion offer, for a ratio of 8.65.
The latest tender’s average accepted price was 104.25, corresponding to a 1.757% annualized yield. In July, the average accepted yield was 1.754%. The lowest price accepted this time was 104.20, or a 1.764% annualized yield; the average tender price was 103.52, corresponding to 1.849%.
Issue 10GB3505001 carries a 2.29% annual coupon paid semiannually and matures May 15, 2035. The competitive tender was limited to appointed primary dealers. The HKMA’s tender notice says proceeds will be invested in infrastructure projects within the Infrastructure Bond Framework. Settlement is scheduled for Monday, Nov. 16.
