Hong Kong interbank rates drop after quarter-end pressures

Hong Kong’s interbank offered rate fell sharply after month- and quarter-end pressures eased, with the mortgage-linked one-month HIBOR declining for a fifth consecutive session to 3.497 percent, its lowest level in nearly two weeks.

The rate fell 4 basis points on the day and has dropped more than 41 basis points over the past five sessions.

Overnight HIBOR tumbled about 142 basis points to 3.6 percent, marking a near two-week low, while the one-week and two-week tenors also retreated below 4 percent, at roughly 3.50 percent and 3.53 percent respectively, each declining for a third straight session.

By contrast, the three-month HIBOR, a key gauge of banks' medium-term funding costs, edged up slightly by more than 1 basis point to 3.54 percent.

STAFF REPORTER