The Hong Kong Monetary Authority completed a HK$1.0 billion tender of 10-year institutional government bonds on 12 August 2026, attracting robust investor demand as the authority reopened an existing bond issue under its Infrastructure Bond Programme. The offering received HK$5.488 billion in applications, resulting in a bid-to-cover ratio of 5.49, indicating nearly five and a half times more demand than the amount available.
- Tender Date: 12 August 2026
- Settlement Date: 13 August 2026
- Maturity Date: 24 July 2035
- Coupon Rate: 3.17%
- Average Yield: 3.580%
The reopened bond, issued under stock code 4294 (HKGB 3.17 3507), achieved an average accepted price of 97.12, corresponding to an annualised yield of 3.580%. The lowest price accepted was 96.85, yielding 3.617%. The significant oversubscription required a pro-rata allocation ratio of approximately 2 percent, with successful bidders receiving only about 2 percent of their requested amounts.
The strong performance reflects sustained investor appetite for Hong Kong government debt instruments, particularly as institutional buyers seek exposure to longer-dated fixed-income securities. The average tender price across all bids reached 96.19, implying a broader market yield of 3.707%, suggesting competitive bidding throughout the auction process. The HKMA’s Infrastructure Bond Programme continues to provide institutional investors with liquid, tradable government securities aligned with Hong Kong’s infrastructure financing objectives.
The Hong Kong Monetary Authority serves as the central banking institution of Hong Kong and manages monetary policy, currency stability, and payment systems for the Hong Kong Special Administrative Region.
