Understanding the Latest iBond Series Interest Rate Announcement
If you are an investor in the iBond Series or are looking for secure investment opportunities, the recent interest rate announcement by the Hong Kong Monetary Authority (HKMA) is crucial information. The determination of the interest rate for the sixth interest payment in 2024 has significant implications for investors like you. Let’s delve into the details of this announcement.
Interest Rate Determination
The HKMA, on behalf of the Hong Kong Special Administrative Region Government, has revealed the per annum interest rate for the sixth interest payment of the iBond Series. This payment is scheduled for June 24, 2024, as per the terms specified in the Issue Circular from May 12, 2021.
- The interest rate for the sixth payment is calculated as the higher of the Floating Rate and Fixed Rate.
- As per the latest data on June 7, 2024, the Floating Rate is 1.98% and the Fixed Rate is 2.00%.
Background and Significance of the iBond Series
The iBond Series, known by its Issue Number 03GB2406R and Stock Code 4246, is part of the Retail Bond Issuance Programme under the Government Bond Programme. This series has been a popular choice among retail investors in Hong Kong due to its secure nature and stable returns.
- The original date for the sixth interest payment was June 23, 2024.
- Due to non-business day constraints, the payment has been rescheduled to June 24, 2024.
Calculation of Floating Rate
The Floating Rate for the sixth interest payment is derived from the year-on-year rates of change in the 2019/20-based Composite Consumer Price Index (CPI) until April 2024.
- November 2023: 2.60%
- December 2023: 2.40%
- January 2024: 1.70%
- February 2024: 2.10%
- March 2024: 2.00%
- April 2024: 1.10%
- Arithmetic Average: 1.98%
Investor Implications
The announcement of a 2.00% per annum interest rate for the sixth payment underscores the stability and attractiveness of the iBond Series for investors like you.
- This decision ensures that bondholders receive a competitive return, reflecting the government’s commitment to secure investment avenues.
- It also contributes to the transparency and predictability of the financial markets, essential for maintaining investor confidence and market stability.
Hot Take: Secure Your Investment with the iBond Series
With the latest interest rate announcement for the iBond Series, investors have yet another reason to consider this secure investment opportunity. Stay informed about the financial market developments to make sound investment decisions.
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