The Hong Kong Monetary Authority (HKMA) successfully priced a RMB1.25 billion reopening of 10-year institutional government bonds on 23 July 2026, drawing exceptional investor appetite with a bid-to-cover ratio of 8.65 times. The bonds, issued under the Infrastructure Bond Programme, settled at an average price of 104.42, translating to an annualised yield of 1.754%.
- Tender Amount: RMB1.25 billion offered; RMB10.810 billion applied
- Maturity Date: 15 May 2035
- Coupon Rate: 2.29%
- Settlement Date: 27 July 2026
- Bid-to-Cover Ratio: 8.65x
- Average Yield: 1.754%
The reopening of issue 10GB3505001 generated RMB10.810 billion in total applications, substantially exceeding the RMB1.25 billion supply. Institutional investors bid across a narrow yield range, with the lowest price accepted at 104.14, corresponding to a yield of 1.787%. A pro-rata allocation ratio of approximately 81% was applied across successful bidders, reflecting the strong competitive environment for the issuance.
The tender results underscore continued institutional demand for Hong Kong-denominated RMB government bonds. The average tender price of 103.49 indicated pre-auction expectations at 1.867% yield, suggesting the final pricing tightened relative to market expectations. Settlement is scheduled for 27 July 2026, with bonds maturing on 15 May 2035.
The HKMA, acting on behalf of the Hong Kong Special Administrative Region Government, manages the issuance of government bonds through its Infrastructure Bond Programme to support infrastructure financing and develop Hong Kong’s debt capital markets.
