The average forecasts for the final settlement prices of One-month and Three-month HIBOR futures on 15 January show panellists expect one-month HIBOR to be 5.83% on that date and three-month HIBOR to be 6.07%. The forecasts for the one-month rate range from 5.44% to 6.11%, while the forecasts for the three-month rate are between 5.75% and 6.37%. On 15 November, cash market rates for one-month and three-month HIBOR were 5.55% and 5.94% respectively.
The newsletter also features an article on the Hong Kong dollar interest rate outlook by Philippe Dirckx, Capital Markets Deputy Manager and Head of Interest Rate Derivatives at Fortis Bank. Mr Dirckx reviews several factors that influence Hong Kong dollar interest rates, including Hong Kong's economic prospects, market liquidity, investor demand and the currency markets, and says "we expect a steepening of the US dollar yield curve and a flattening of the Hong Kong dollar yield curve."
In addition, the newsletter includes an article that highlights the factors that affect the HIBOR market and explains how investors can profit from directional trading in HIBOR futures.
