[Bond Investment Guide] How to Buy Bonds in Hong Kong?
Major Comparison of U.S. Treasury Yield Returns in 2026 | How to Buy U.S. Treasuries in Hong Kong? (Regularly Updated)
U.S. Treasury bonds
U.S. Treasury bonds, also known as U.S. government bonds, are long-term securities issued by the U.S. government to raise funds for government operating expenses and debt repayment. These bonds are typically offered to large institutional investors and individual investors and are among the most widely traded and creditworthy securities globally.BondFirst, it is widely regarded as a key safe-haven investment and a way to generate passive income.
U.S. Treasury bondsThere are bonds with different maturities, including short-term, medium-term, and long-term securities. These U.S. government bonds can be acquired through public tenders, auctions, or direct sales conducted by the U.S. Treasury. Repayment of all U.S. government bonds is guaranteed by the U.S. government, making them among the safest investments.
Types of U.S. Treasury Securities
In general, U.S. Treasury securities are classified as short-, medium-, and long-term; detailed types of U.S. Treasuries can be found in the table below:
Types of U.S. Treasury Securities | Issuance term | Days until maturity | Dividend payout frequency | Features | |
Short-term Treasury bonds | U.S. Treasury Bills (English: U.S. Treasury Bills, abbreviated as T-Bills) | Within 1 year | 4 weeks; 13 weeks; 26 weeks; 52 weeks Auction once a week | No dividend paid before maturity | It is purchased at a discount to par and the face amount is received at maturity. |
Medium-term government bonds | U.S. Treasury Notes (English: U.S. Treasury Notes, abbreviated as T-Notes) | Within 10 years | Issued monthly on the 2nd, 5th, and 7th years: auctions at the end of each month; on the 3rd and 10th years: auctions in the middle of each month. | Pays dividends once every six months. | ·Essentially the most important type of government bond·The 10-year U.S. Treasury bond: a commonly used benchmark in the U.S. Treasury market, with its yield often reflecting market sentiment toward the overall U.S. economy. |
Long-term government bonds | U.S. Treasury Bonds (English: U.S. Treasury Bonds, abbreviated as T-Bonds) | 10–30 years | Issued monthly for 10 years, 20 years, and 30 years; auctioned in February and August each year. | Pays dividends once every six months. | ·Upon maturity, the principal amount will be paid to the holder together with the final interest payment. ·At issuance, a coupon rate is set—close to the prevailing market yield at the time—and used as the bidding rate in the auction. |
U.S. Treasury Inflation-Protected Securities (TIPS) | 10–20 years | 5 years; 10 years; 20 years | Pays dividends once every six months. | The principal is subject to adjustment in line with inflation or deflation. | |
Latest U.S. Treasury Yield for 2025
U.S. Treasury yields, also known as U.S. bond yields, refer to the actual rate of return that investors receive when holding U.S. Treasury securities. Yield levels typically reflect market perceptions of the U.S. economy and fiscal conditions and are influenced by a variety of factors, including inflation, interest rates, face value, holding period, purchase price, and sale price.
Treasury Bond Name | Yield (yield rate) |
6-Month Treasury Bill (US 6M) | 3.69 basis points |
1-Year Treasury Note (US 1Y) | 3.64 basis points |
2-Year Treasury Note (US 2Y) | 3.69 basis points |
3-Year Treasury Bond (US 3Y) | 3.70 basis points |
5-Year Treasury Bond (US 5Y) | 3.82 basis points |
7-Year Treasury Bond (US 7Y) | 4.02 basis points |
10-Year Treasury Bond (US 10Y) | 4.24 basis points |
20-Year Treasury Bond (US 20Y) | 4.86 basis points |
30-Year Treasury Bond (US 30Y) | 4.89 basis points |
Data source: Futubull app. Returns are rounded to two decimal places. Data as of March 17, 2026. | |
U.S. 10-Year Treasury Bond
The following are the yields on U.S. 10-year Treasury bonds:
How is the U.S. Treasury yield calculated?
U.S. Treasury yields refer to the returns investors can earn by holding U.S. government bonds. These yields typically reflect market perceptions of the U.S. economy and fiscal conditions and are influenced by a variety of factors, including inflation and interest rates.
You can also use the calculator in the Futubull app at any time to predict your returns! After screening out your preferred bonds, you can use "Quick Buy" to say goodbye to the hassle of long transaction times! Say farewell to the old trading method—no longer do you have to rely on traders to solicit quotes in the over-the-counter market and wait for a matching counterparty and price before a trade can be executed. With "Quick Buy," orders are usually executed immediately.
U.S. Treasury yield (yield rate)
U.S. Treasury bond yields (or yields to maturity) are categorized into several specific definitions, including: current yield, yield to call, and yield to maturity.
Current Yield
This is calculated as the annual average rate of return, using the following formula: current annual coupon payment on the bond divided by the bond price, multiplied by 100%.
Yield to Call
The yield calculated from the date of initial bond purchase until the receipt of the redemption notice applies only to bonds that are redeemed early.
Yield to Maturity (YTM)
The expected rate of return from holding a bond until maturity is typically expressed as an annualized yield and is the most commonly used calculation method.
Example: Purchase a bond for RMB 1,000 with a coupon rate of 5%, maturing in three years.
Investors will receive bond interest of RMB 50 in the first year, RMB 50 in the second year, and another RMB 50 in the third year upon maturity, plus the bond's face value of RMB 1,000, for a total return of RMB 1,150.
Upon issuance of the bond, the issuer has agreed to pay RMB 1,150, while investors will receive annual interest payments and recover the principal at maturity.
However, bond prices are determined by the market, influenced by factors such as credit ratings and interest rates.
The yield to maturity (YTM) is a measure of the return an investor would receive if they held a bond until its maturity, regardless of the purchase price.
If:
If you purchase a bond at 950 yuan, its yield to maturity (YTM) is 6.9%, which is higher than the 5% yield you would obtain by purchasing the bond at its face value of 1,000 yuan.
If you purchase the bond at RMB 1,100, the yield to maturity (yield at maturity) will be only 1.6%.
What are the benefits of buying U.S. Treasury bonds?
Safety: As U.S. Treasury bonds are issued by the U.S. government, they are generally backed by the government's creditworthiness and ability to repay its debts. Consequently, U.S. Treasuries are widely regarded as "non-defaultable" bonds and are renowned as one of the safest investment instruments in the world.
Fixed Returns: U.S. Treasury bonds offer investors fixed returns, enabling them to receive steady interest income after purchase.
Higher Liquidity: Compared with other types of bonds, U.S. Treasury securities exhibit higher liquidity.
Risk balancing: If you invest in high-risk products while also holding U.S. Treasury bonds, the latter can help balance both risk and return.
How can U.S. Treasury bonds be purchased in Hong Kong?
In Hong Kong, you can purchase U.S. Treasury bonds through Futu. Futu offers U.S. Treasury bond products with various maturities and interest rates. Upon maturity of the held U.S. Treasury bonds, the funds will be reinvested in new bonds, ensuring stable interest income and a high level of capital safety. Bond fees consist of custody fees and transaction fees. Click here to learn more about Futu.Bond Fee Standards。
When purchasing U.S. Treasury bonds, the following points should be noted:
You must have a Hong Kong securities account (such as a Futu Securities account) to trade U.S. Treasuries in Hong Kong.
U.S. Treasury bonds are denominated in U.S. dollars, so you must convert your currency into dollars before purchasing them.
U.S. Treasury securities come in various types; investors should select the appropriate bond based on their individual risk tolerance.
It is essential to be familiar with the risks and opportunities in the U.S. Treasury market and to conduct thorough research before making a purchase.
Here are the steps for purchasing U.S. bonds on Futu:
You need a platform that allows trading U.S. Treasury bonds; go toFutu official websiteand register a new account. (Register Now)
Deposit Funds: Enter your personal and financial details, then fund your account via bank transfer, debit card, or Apple/Google Pay.(Instant Deposit)
Download the Futubull app and log in.(Download Now)
On the bond homepage or after searching and selecting the bond you wish to trade, click [Buy] on the bond details page.
Enter the desired face value and your expected purchase price, then place an order based on the “Reference Bid Price.” (This price is for reference only; the actual executed transaction price may differ from it.)
Click [Buy] – enter your trading password. After the order is successfully submitted, please wait patiently for the trade to be matched; the execution price will not exceed the price you specified when placing the order.
*Please note that you should familiarize yourself with all applicable fees and terms and conditions before trading. Futu Securities may charge certain transaction fees based on account type and trading volume.
Buying U.S. Treasuries: Learning to Use the "Bond Ladder" Investment Strategy
Investors purchase U.S. Treasury bonds with the goal of earning a steady stream of fixed income, typically employing a "bond ladder" strategy to generate stable cash flows. In other words, they allocate their bond holdings across short-, medium-, and long-term maturities in a balanced manner and reinvest the proceeds as each bond matures.
Example
Xiaoming has RMB 1 million in funds and seeks a steady stream of income to cover his living expenses. To mitigate interest-rate volatility and ensure sufficient liquidity, he employs a "bond ladder strategy," evenly allocating his capital across four U.S. Treasury bonds with different maturities.
1. Divide the RMB 1 million into four installments of RMB 250,000 each.
2. Invest in U.S. Treasury bonds with maturities of 6 months, 12 months, 18 months, and 24 months, respectively.
Upon the maturity of U.S. Treasury bonds:
Upon the maturity of the June-term U.S. Treasury bond, redeem the principal of RMB 250,000 and reinvest it in a 12-month U.S. Treasury bond; when the 12-month bond matures and the principal of RMB 250,000 is redeemed, reinvest that amount in an 18-month U.S. Treasury bond, and continue this rolling investment strategy.
This approach generates stable cash flow, and by releasing capital every six months, it helps to diversify interest-rate risk, thereby enhancing the stability of the investment portfolio.
Further reading:What impact does U.S. interest-rate cuts have on U.S. Treasury bonds, and how should investors position themselves?
Further reading:[Bond ETFs] After the rate cut, you can keep an eye on these U.S. Treasury bond ETFs.
Investing in U.S. Treasury securities requires a thorough understanding of the associated fees and terms and conditions, as well as comprehensive research and due diligence on the product. If you have any questions, please consult a financial professional.
The principal and interest on bonds are repaid by the issuer or, where applicable, the guarantor, and bondholders therefore bear the credit risk of the issuer or guarantor. If the issuer or guarantor fails to perform its contractual obligations, bondholders may be unable to recover the principal and interest on their investment. U.S. government bonds are issued and guaranteed by the U.S. government, and trading in these bonds takes place over-the-counter. Investing involves risks, and bond prices are subject to market supply-and-demand dynamics. Although the likelihood of recovering the principal and interest on U.S. government bonds is relatively high, early redemption by bondholders may result in losses due to market risk. While the probability of the U.S. government defaulting on the principal and interest of its bonds is low, changes in its fiscal condition or credit rating could still give rise to default risk. Therefore, before making any investment decision, clients should carefully review the relevant offering documents, fully understand the associated risks as well as the legal, tax, and accounting implications and consequences, and determine, based on their individual circumstances, whether the investment is consistent with their financial situation and investment objectives and whether they can tolerate the associated risks; where necessary, they should seek appropriate professional advice.
