Market demand for Hong Kong’s second-ever sukuk exceeded the amount on offer by a two-to-one margin, pushing the Islamic debt instrument’s coupon below 2% at a time when global bond markets are witnessing a rise in yields.

The five-year, dollar-denominated bond, issued by the Hong Kong Monetary Authority (HKMA) today (May 28) on behalf of the government, attracted bids “two times the issuance size” of $1 billion, the HKMA said.

This pushed the coupon down to 1.89%, at the “tight end of the