A HK$500 million note issued by the Hong Kong Mortgage Corp (HKMC) is likely to trigger strong interest from investors when it opens for tender today. Priced at a coupon interest rate of 4.28 per cent, the issue offered investors a competitive yield, said analysts, and came with an effective sovereign credit. 'The general trend of the market is that investors everywhere are in search of yields,' said Jason Carley, head of Asia-Pacific credit research for Merrill Lynch. 'Whether its United States government agencies or corporate debt with a strong profile, any strong credit story that offers a little bit of yield will be in strong demand. 'We certainly have seen a lot of demand from the retail investor base in Asia as yields grind lower,' he said. Today's issue was the 11th under the HKMC's HK$20 billion Note Issuance Programme, which has so far raised HK$5 billion. The proceeds were used to buy mortgages, which allowed banks to securitise their home-loan portfolios. The programme was also aimed at establishing an active and liquid bond market. Yesterday, HKMC chief executive Peter Pang Siu-tong said that the corporation had secured HK$8.6 billion in mortgages last year. 'We will settle HK$5.2 billion in purchases tomorrow,' he said yesterday. Mr Pang expected the latest note issue to be well supported since it was priced at 20 basis points above Exchange Fund Paper. This was almost three times the yields available on six-month time deposits, currently yielding between 1.5 per cent and 1.75 per cent.