Exchange fund paper yields lower in early 18th

Hong Kong Exchange Fund bills fell early on 18th, with 3-month Exchange fund bills yielding 0.01%, 17th-0.02%; 1-year yield is now reported at 0.09%, 17th. Comprehensive foreign reports June 18, by the interbank market liquidity sufficient support, short-term bills buyer's yield quotes into negative areas, Hong Kong Exchange Fund bills on the 18th early trading lower, 3-month Exchange fund bills yield is now reported 0.01%, 17th, 0.02%,　　The 1-year yield fell to 0.09% from the previous 0.13. Frances Cheung, a fixed income analyst at Standard Chartered, said local liquidity was plentiful enough to support banks ' demand for short-term bills and good interbank rates.　　1-month interbank rates are reported at 0.04%, 17th at 0.26%, 3-month interbank rates to 0.3% from 17th. The large aggregate balance of the banking system will insulate Hong Kong interbank funds from short-term capital outflows. Exchange fund bill yields and short-term swap rates are expected to remain low in the near term.