HKMA announces tender results for 10-year government bonds
The Hong Kong Monetary Authority announced the results of a tender for HK$1.0 billion in 10-year government bonds. The tender received HK$6.024 billion in applications, resulting in a bid-to-cover ratio of 6.02.
Strong demand for benchmark bonds
The Hong Kong Monetary Authority (HKMA), acting as the representative of the Hong Kong Special Administrative Region Government, successfully conducted a tender for 10-year HKD institutional Government Bonds.
This tender involved the re-opening of an existing Government Bond issue, specifically number 10GB3507001, under the established Infrastructure Bond Programme.
A total of HK$1.0 billion worth of these 10-year Government Bonds were made available to the market.
The tender, which took place on January 14, saw robust participation from institutional investors, attracting a substantial HK$6.024 billion in applications.
This high level of interest translated into a bid-to-cover ratio of 6.02, indicating that demand for the bonds was more than six times the amount offered.
The average price at which bids were accepted was 100.04, which corresponds to an annualised yield of 3.190 percent.
The issue and settlement date for these newly allotted bonds is set for January 15, 2026, ensuring a swift transition of ownership.
Detailed bond characteristics and pricing
The re-opened government bond, identified by stock code 4294 (HKGB 3.17 3507), has a tenor of 10 years and will mature on July 24, 2035.
It carries a fixed coupon rate of 3.17 percent.
The tender results provide further insights into pricing dynamics.
The lowest price accepted for the bonds was 99.88, corresponding to an annualised yield of 3.210 percent.
The pro-rata ratio for accepted bids, indicating the proportion of applications allotted at the lowest accepted price, was approximately 57 percent.
The overall average tender price, reflecting the broader market interest, stood at 99.20, with an implied yield of 3.295 percent.
These figures illustrate the range of investor appetite and pricing expectations for this specific government bond issue.
Solid demand underscores market confidence
The robust bid-to-cover ratio of 6.02 for this 10-year bond re-opening clearly signals strong institutional investor appetite for Hong Kong government debt.
This demand, coupled with an average accepted yield of 3.190 percent, suggests a stable market outlook for HKSAR sovereign credit.
Its successful execution reinforces the depth and liquidity of the local bond market.