Hong Kong is raising the guaranteed coupon rate for its 11th batch of Silver Bonds for senior citizens, amid market expectations that the US Federal Reserve will raise interest rates later this year. Up to HK$50 billion (US6.4 billion) of Silver Bonds will go on sale this month with a guaranteed annual coupon of 4.25 per cent, up from 3.85 per cent for the batch sold in September last year, the government announced on Thursday. The three-year bonds will be on sale from 9am on August 21 until 2pm on September 4, and will be issued on September 15, right before the Fed is due to announce its next interest rate decision. The government will pay either the minimum fixed rate or a floating return linked to Hong Kong’s inflation rate, whichever is higher. Over the past three years, the guaranteed minimum rates for Silver Bonds were 3.85 per cent, 4 per cent and 5 per cent, respectively.