December 12, 2019
|Govt. Bond Yields||Latest Yield||Previous Day||Previous Week||YTD|
|2 Year||1.677||0.0||0.0||▼ 14.2|
|5 Year||1.589||▼ 1.1||▲ 2.6||▼ 29.7|
|10 Year||1.602||▼ 2.5||▲ 3.2||▼ 43.2|
* Government bond yield changes are expressed in basis points.
|Currencies||Latest Rate||Previous Day||Previous Week||YTD|
|HKD per USD||7.805||▲ 0.0||▲ 0.3||▲ 0.3|
|HKD per JPY||0.071||▲ 0.7||▲ 0.8||▼ 0.0|
* Exchange rate changes are expressed as a percentage change.
|Interest Rates||Latest Rate||Previous Day||Previous Week||YTD|
|1D HIBOR||1.213||▲ 1.2||▲ 18.9||▼ 339.1|
|3M HIBOR||2.374||▲ 2.2||▲ 2.5||▲ 4.7|
* Interest rate changes are expressed in basis point change.
|Policy Rates||Latest Rate
|Discount Window Base Rate||2.250||▼ 25.0||▼ 50.0|
* Policy rate changes are expressed in basis point change.
|Regional Rating Institutions|
|Non-Regional Rating Institutions|
ASEAN+3 Bond Market Guide is a comprehensive explanation of the regionís bond markets. It provides
various information such as the history, legal and regulatory framework, specific characteristics of the
market, trading and transaction, and other relevant information. The Hong Kong, China Bond Market
Guide is an outcome of the strong support and kind contributions of ASEAN+3 Bond Market Forum
members and experts, particularly from Hong Kong, China. The report should be recognized as a
collective good to support bond market development among ASEAN+3 members.
|* Download previous issues PDF|
Between 31 August and 15 October, local currency (LCY) government bond yields in Hong Kong, China fell slightly for shorter-dated tenors and jumped for medium- to longer-dated tenors. Yield movements tracked the movements of United States (US) Treasury yields as the Hong Kong dollar is pegged to the US dollar. Hong Kong, China's yield curve has been inverted since the second quarter (Q2) of the year. The inverted yield curve reflected expectations of an economic downturn in Hong Kong, China. Hong Kong, China's gross domestic product growth contracted 2.9% year-on-year (y-o-y) in the third quarter (Q3) of 2019 amid months of political unrest. In quarter-on-quarter (q-o-q) seasonally adjusted terms, Hong Kong, China's GDP contracted 3.2% q-o-q in Q3 2019 following a 0.5% q-o-q drop in Q2 2019, indicating that the economy has fallen into a technical recession.
Hong Kong, China's LCY bonds outstanding dropped slightly to HKD1,954.7 (USD249.4) in Q3 2019 from HKD1,955.5 billion (USD250.4) in Q2 2019. The 0.04% q-o-q dip in Q3 2019 was smaller than the 0.2% q-o-q drop in the prior quarter. Annual growth rose to 2.1% y-o-y in Q3 2019 from 1.4% y-o-y in Q2 2019 due to stronger growth in both government and corporate bonds. Government bonds accounted for 59.9% of LCY bonds outstanding in Q3 2019.
In August, the government announced fiscal support measures worth HKD19.1 billion to aid citizens and businesses affected by the economic downturn. In September, the government-owned Hong Kong Mortgage Corporation introduced a relief measure targeted to small and medium-sized enterprises facing cash flow pressure. On 14 October, the Hong Kong Monetary Authority lowered the countercyclical capital buffer from 2.5% to 2.0%, releasing capital that had previously built up in the banking sector. The move injected an estimated HKD200 billion-HKD300 billion into the economy.
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