Overnight Hibor at nearly three-month high, mortgage benchmark dips to three-week low

The overnight Hong Kong interbank offered rate rose to a new high of two and a half months, while the mortgage-related one-month maturity retreated to a new three-week low.

The overnight Hibor rose four basis points to 0.2203 percent, reflecting the tight liquidity of the Hong Kong dollar in the short term.

Banks in Hong Kong borrowed a total of HK$40 million through the discount window from Tuesday to Wednesday, according to data from the Hong Kong Monetary Authority.

Meanwhile, one-and two-week Hibor climbed to 0.3627 percent and 0.5917 percent respectively, reaching their highest in a week.

But the one-month Hibor – the benchmark used in pricing residential mortgage loans – fell about 4 bps to about 0.8986 percent, its lowest for three weeks.

The three-month Hibor, which reflects the cost of bank funding, dropped to 1.76 percent, hitting a three-week low.

HELEN ZHONG