HK composite interest rate reaches 0.41%

It's because of funding costs.

According to Barclays, the 10-year US Treasury bond yield rebounded 9bp to 2.72%.

Compared to the 3.00% level at the start of the year, current 10-year UST yields are still 28bps lower.

Here's more from Barclays:

Locally, the Hong Kong composite interest rate rose 4bps from 0.37% at end of February to 0.41% at the end of March 2014.

The rise in the composite interest rate reflected increases in weighted funding cost of for both deposits and interbank funds.

Meanwhile, the three-month Hibor remained unchanged at 0.37%, while the HKD/USD exchange rate remained largely unchanged at 7.754.