The Hong Kong Monetary Authority (HKMA) accepted lower average yields on its Nov. 10 tenders for 91-day and 182-day bills, while applications exceeded the amounts allotted in both issues.
The 91-day issue, Q2645, received HK$168.655 billion in applications. The HKMA allotted HK$67.876 billion at an average accepted yield of 2.79%. Its highest accepted yield was 2.83%, and its average tender yield was 2.94%.
The 182-day bill, H2674, drew HK$71.322 billion in applications. The authority allotted HK$19 billion at an average accepted yield of 2.93%. Its highest accepted yield was 2.95%, and its average tender yield was 3.00%.
Compared with the Nov. 3 tenders, average accepted yields fell by 0.02 percentage point for the 91-day bill and 0.05 percentage point for the 182-day bill. The earlier averages were 2.81% and 2.98%, respectively. At the highest accepted yield, the HKMA’s pro rata calculation allocated about 77% of the requested amount for Q2645 and 36% for H2674.
Both bills are scheduled for issue Nov. 11. Q2645 matures Feb. 10, 2027, and H2674 matures May 12, 2027.
The HKMA says its Exchange Fund Bills and Notes give investors and banks Hong Kong dollar instruments to trade, hold as investments or use in liquidity management. Banks with Hong Kong dollar clearing accounts at the authority may obtain overnight liquidity through its Discount Window using repurchase agreements secured by Exchange Fund papers or other eligible securities.
The next listed tender is Nov. 17. The HKMA plans to offer HK$69.281 billion in 91-day bills, HK$15 billion in 182-day bills and HK$5 billion in 364-day bills. The bills are scheduled for issue Nov. 18.
