HKMA to Reopen 10-Year HKSAR Bonds on Aug 12, Yield at 3.459%
Tony Kim Aug 06, 2026 09:02
HKMA announces HK$1 billion tender for 10-year HKSAR bonds reopening on Aug 12, 2026, with a 3.459% yield and 3.17% annual coupon.
The Hong Kong Monetary Authority (HKMA) announced it will reopen its 10-year Hong Kong Special Administrative Region (HKSAR) Institutional Government Bonds (issue 10GB3507001) for tender on Wednesday, August 12, 2026. This re-opening, part of the Infrastructure Bond Programme, will offer an additional HK$1 billion of the bonds, which carry an annual coupon rate of 3.17% and will mature on July 24, 2035.
The bonds are priced with an indicative yield of 3.459% as of August 6, 2026, and an indicative price of HK$98.01. The auction will be open only to Primary Dealers under the Infrastructure Bond Programme, and results will be published by 3:00 pm on the tender day across multiple platforms, including the HKMA website and Bloomberg.
Each competitive tender must be for a minimum denomination of HK$50,000 or multiples thereof. Successful bidders will pay accrued interest of HK$86.85 per HK$50,000 denomination upon settlement on August 13, 2026.
Reopening Strategy Reflects Market Liquidity Goals
This re-opening continues the HKMA’s ongoing strategy of building liquidity and benchmarks in the fixed-income market through targeted bond issuance. A recent reopening of the same bond series on June 24, 2026, offered HK$1.25 billion with an average tender price of HK$99.87. These re-openings help consolidate outstanding amounts, improving trading liquidity for institutional investors.
Under the Infrastructure Bond Programme, proceeds from the bond issuance are allocated to fund infrastructure projects defined under the programme’s framework. This aligns with the HKSAR Government’s broader objectives of deepening the local bond market and financing sustainable development projects.
Key Details for Investors
The bonds will pay semi-annual interest on January 24 and July 24 each year, with the next payment due January 24, 2027. Once issued, the bonds will be fungible with previously issued 10GB3507001 bonds, allowing seamless trading on the secondary market. The stock code for the bonds is 4294 (HKGB 3.17 3507).
Investors seeking participation must submit bids via Primary Dealers listed on the Hong Kong Government Bonds website. Tendering will take place between 9:30 am and 10:30 am on August 12, 2026. Bids are expected to be competitive, given the recent demand observed in the June 24 reopening.
Outlook for HKSAR Bond Program
The HKSAR Government’s bond issuance strategy, including both new issues and re-openings, has been pivotal in establishing benchmarks and attracting institutional capital. The 10-year bond series is particularly significant given its role in anchoring the yield curve for long-term HKD debt.
While the global fixed-income market faces headwinds from fluctuating interest rates, the yield of 3.459% remains competitive for high-grade sovereign debt. Investors may find the semi-annual coupon payments and stable government backing attractive amid continuing macroeconomic uncertainties.
The tender results, expected on August 12, will provide further insight into market sentiment and demand for Hong Kong government-backed fixed-income securities.
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