The People’s Bank of China (PBOC) has announced that it will issue 10 billion yuan (approx. USD$1.43 billion) in central bank bills via Hong Kong on 20 December as part of efforts to improve the Hong Kong renminbi yield curve.
PBOC has announced that on Friday 20 December 2019 it will issue its 12th round of central bank bills for 2019 via Hong Kong’s Central Moneymarkets Unit (CMU), in accordance with the “Cooperative Memorandum on Use of the Central Moneymarkets Unit to Issue People’s Bank of China Bills” (关于使用债务工具中央结算系统发行中国人民银行票据的合作备忘录) executed by PBOC and the Hong Kong Monetary Authority (HKMA).
According to PBOC the issuance will be for the purpose of “enriching Hong Kong’s high credit-grade renminbi financial products and improving the Hong Kong renminbi yield curve.”
The central bank bills will have a maturity of six months (182) and be fixed rate coupon bonds with a face value of 100 yuan.
A Dutch auction will be used to issue 10 billion yuan in central bank bills via bidding on interest rates.
The term of the bonds will commence on 27 December 2019 and conclude on 26 June 2020.