Hong Kong interbank rates fell across the board on Monday after major market participants offered overnight liquidity and some banks released funds they had been holding for an upcoming IPO.

The overnight interbank rate eased to 1.75/2.00 percent late on Monday after opening at 3.75/3.80 percent, a dealer from a local bank said.

Two traders said some banks that had set aside funds for the upcoming Link REIT IPO had put funds back into the interbank market because of weak sentiment in the stock market.

"Appetite for the IPO may not be as strong as earlier expected," said a trader from a European bank.

Copyright Reuters, 2005