The Hong Kong Monetary Authority (HKMA), acting on behalf of the Hong Kong Special Administrative Region Government, has formally revealed the interest rate for the fourth interest payment of the Silver Bond Series maturing in 2026. Officials set the rate at 5% annually, as detailed in the HKMA’s press statement released on August 4, 2025.
Interest Rate Calculation Process
The Silver Bond Series interest rate, applicable to Issue Number 03GB2608R, operates within the Retail Bond Issuance Programme under the broader Government Bond Programme framework. Following guidelines established in the Issue Circular from July 14, 2023, authorities determined the interest rate by selecting the higher value between the current Floating Rate and Fixed Rate as of August 4, 2025.
During the determination date, the Floating Rate registered at 1.68%, while the Fixed Rate reached 5.00%. Given this substantial difference, officials selected the Fixed Rate for the interest payment due on August 18, 2025.
🇯🇵 0.14% to 3%
🇺🇸 1.2% to 5%This will not end well. https://t.co/8krye0s7WT pic.twitter.com/kOFBU3Loa8
— Financelot (@FinanceLancelot) July 28, 2025
Background and Economic Significance
Hong Kong designed the Silver Bond Series to deliver consistent returns for investors, with particular focus on senior citizens, as part of broader initiatives to create reliable investment opportunities amid global financial market uncertainty. Setting the interest rate at 5% demonstrates the fixed rate’s superiority over the floating alternative, guaranteeing investors receive meaningful returns.
The HKMA indicated that interest rate selection considers year-over-year changes in the 2019/20-based Composite Consumer Price Index, which showed an arithmetic average of 1.68% between January and June 2025. This economic measurement serves as a vital tool for evaluating inflationary conditions and influences bond interest rate decisions.
The HKMA’s management of this bond offering underscores its continued dedication to preserving financial stability while creating practical investment alternatives for citizens. The Silver Bond Series functions as a cornerstone of Hong Kong’s financial approach, providing inflation protection and supporting overall fiscal stability.
Potential Market Reaction
This bond announcement is likely to have minimal direct impact on cryptocurrency markets, as traditional government bonds typically operate independently from digital asset pricing dynamics. The neutral market sentiment surrounding Hong Kong’s monetary policy decisions suggests limited cross-over effects into crypto trading patterns.
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