Exchange Fund Bills Tender Results

On May 31, 2024, the Hong Kong government held a tender for EF Bills with an issue number of M2406. The tender date was May 31, 2024, and the issue date for the bills was June 3, 2024. The bills have a maturity date of July 3, 2024, meaning they have a one-month maturity period. The total amount applied for by investors was a substantial HK$4,300 million. However, the government only allotted HK$800 million of the bills, resulting in a pro rata ratio of about 83%. This indicates that each investor received approximately 83% of the amount they tendered at the highest accepted yield of 4.30%. The average yield accepted by the government was 4.27%, while the overall average tender yield came in slightly higher at 4.50%. This tender demonstrates continued investor demand for short-term Hong Kong government debt instruments in the current market environment. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240531-4/