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HK money rates,

paper yields steady

HONG KONG: Interbank rates and government paper yields finished steady to easier in dull trading with investors cautiously sidelined for hints from local dollar movements, dealers said.

The overnight rate close at five 4-7/8 percent, down from 5-7/8 13/16 on Friday, and three-month was little changed at 6-1/8 six percent.

A recent round of speculation by overseas traders had slashed more than 40 points off the Hong Kong dollar, a dealer said.

The currency finished at HK$7.7432/42 to one US dollar today, little changed from Friday, but was down from 7.7385/95 on August 9 when a Moody's report said the local dollar was still prone to speculative attacks.

Trading of government paper was quiet with only light buying of longer-dated bonds.

The one-week bill yield was steady at 5.75 percent. Three-year notes yielded three points lower at 6.70 percent and five-year notes yielded 7.35 against 7.40 percent.

The closing balance in the Exchange Fund account was a low HK$1.08 billion after banks deposited HK$125 million at the discount window.-Reuter