Hong Kong interbank rates edged higher on Wednesday as players prepare funding ahead of upcoming big share offerings and the market also took a lead from firmer US bond yields after upbeat US economic data.
"Most players are seeking for two- and three-month money in anticipation that market liquidity will be tight ahead of a series of large IPOs over the next few months," said a dealer from a European bank.
The two-month interbank rate rose to 3.65/3.70 percent from Tuesday's close of 3.62/3.65 percent, while the three-month rate was quoted at 3.70/3.75 percent versus 3.67/3.70 percent.