HK interbank rates rise across the curve after HKMA intervention

Hong Kong interbank offered rates climbed across the board on Friday after the city’s de facto central bank intervened twice in the currency market to defend the peg.

The mortgage-linked one-month HIBOR reversed its recent decline, jumping 14.63 basis points to 0.85875 percent, the highest level since June 26, according to the Hong Kong Association of Banks. It marked the first increase since July 2.

The overnight rate rose 0.94 basis points to 0.02982 percent, while the one-week and two-week tenors gained 19.7 and 18.23 basis points, respectively — all hitting their highest levels since late June.

Rates for longer tenors also moved higher. The three-month HIBOR climbed 8.44 basis points to 1.78435 percent, the highest since May 21. The six-month rate rose 6.28 basis points to 2.38048 percent, and the 12-month rate edged up to 2.9231 percent.

STAFF REPORTER